Download:
pdf |
pdfGuaranty Agency Financial
Report (GAFR) ED Form
2000
Instruction Guide
Revised: September 2017
Guaranty Agency Financial Report (GAFR) Guide
Federal Student Aid
Guaranty Agency Financial Reporting
Instruction Guide
Office of Federal Student Aid
Union Center Plaza, 830 First Street, N.E. 5th Floor
Fax 202.275.3482
E-mail: mailto: [email protected]
Revised: September 2017
Page 2
Guaranty Agency Financial Report (GAFR) Guide
Table of Contents
INTRODUCTION .................................................................................................................................. 10
CERTIFICATION .................................................................................................................................. 11
DEFINITIONS ........................................................................................................................................ 12
CHAPTER 1: GUARANTY AGENCY FINANCIAL REPORT MONTHLY.......................................... 13
Reinsurance, Trigger Figure and Collections ......................................................................................... 14
Financial Processing ............................................................................................................................... 17
For Fiscal Month Of Reporting ............................................................................................................... 19
MR – 1 Claims Paid ........................................................................................................................... 20
MR 1 Claims Paid - Amount Due To/ (From) Guarantor ............................................................... 22
MR-1-A Defaults - Principal Amount ............................................................................................ 22
MR-1-A Defaults - Other Amounts ................................................................................................ 22
MR-1-B Exempt/Lender-of-last-resort- Principal Amount ............................................................ 23
MR-1-C Death/Disability - Principal Amount ................................................................................ 24
MR-1-D Closed School/False Certification - Principal Amount .................................................... 24
MR-1-E Bankruptcy - Principal Amount ........................................................................................ 25
MR-1-F Unpaid Refunds - Principal Amount................................................................................. 25
MR-1-G Discharges ........................................................................................................................ 26
MR-2 Borrower Payment Return (Closed School/False Certification) .............................................. 27
MR-2 Borrower Payment Return – Amount Due To/ (FROM) Guarantor..................................... 28
MR-2 Borrower Payment Return - Principal Amount .................................................................... 28
MR-2 Borrower Payment Return - Accrued Interest ...................................................................... 28
MR-3 Status Changes ......................................................................................................................... 28
MR-3 Status Changes - Amount Due To/ (From) Guarantor ......................................................... 29
MR-3-A Death/Disability - Principal and Interest .......................................................................... 30
MR-3-B Closed School/False Certification - Principal and Interest ............................................... 30
MR-3-C Bankruptcy - Principal and Interest .................................................................................. 30
MR-4 TOP Overpayments ................................................................................................................. 31
MR-4 TOP Overpayments - Amount Due To/ (From) Guarantor .................................................. 31
MR-4 TOP Overpayments – Principal ............................................................................................ 31
MR-4 TOP Overpayments – Interest Amount ................................................................................ 32
MR-4 TOP Overpayments – Other Amounts.................................................................................. 32
MR-5 Repurchases - Current Fiscal Year (CFY) ............................................................................... 32
Revised: September 2017
Page 3
Guaranty Agency Financial Report (GAFR) Guide
MR-5 Repurchases - CFY - Amount Due To/ (From) Guarantor ................................................... 33
MR-5 Repurchases - CFY - Principal Amount ............................................................................... 34
MR-5 Repurchases - CFY - Accrued Interest Due ED ................................................................... 35
MR-5 Repurchases - CFY – Other Amounts .................................................................................. 35
MR-5-A Repurchases - CFY – Defaults ......................................................................................... 35
MR-5-B Repurchases - CFY - Exempt /Lender-Of-Last-Resort .................................................... 36
MR-5-C Repurchases - CFY – Death/Disability ............................................................................ 36
MR-5-D Repurchases - CFY - Closed School/False Certification ................................................. 36
MR-5-E Repurchases - CFY - Bankruptcy (Chapter 7, 11, 12 and 13) .......................................... 37
MR-6 Repurchases for Reinsurance Claims Paid in Prior Fiscal Year .............................................. 38
MR-6 Repurchases - PFY - Amount Due To/ (From) Guarantor ................................................... 38
MR-7 Partial Refunds - Current Fiscal Year (CFY) .......................................................................... 38
MR-7 Partial Refunds - CFY - Amount Due To/ (From) Guarantor .............................................. 39
MR-7-B Partial Refunds - CFY – Exempt/Lender-of-Last-Resort ................................................. 40
MR-7-C Partial Refunds – CFY – Death and Disability................................................................. 40
MR-7-D Partial Refunds - CFY - Closed School or False Certification ......................................... 40
MR-7-E Partial Refunds - CFY – Bankruptcy ................................................................................ 40
MR-8 Partial Refund - Previous Fiscal Year (PFY)........................................................................... 41
MR-8 Partial Refunds - PFY, Amount Due To/ (From) Guarantor ................................................ 41
MR- 9 Overstated Claims ................................................................................................................... 41
MR-9 Overstated Claims - Amount Due To/ (From) Guarantor .................................................... 41
MR-9-A Overstated Claims – Defaults ........................................................................................... 41
MR-9-B Overstated Claims - Exempt/Lender of Last Resort ......................................................... 41
MR-9-C Overstated Claims - Death/Disability ............................................................................... 42
MR-9-D Overstated Claims - Closed School/False Certification ................................................... 42
MR-9-E Overstated Claims – Bankruptcy ...................................................................................... 42
MR-10 Rehabilitated Loans ............................................................................................................... 42
MR-10 Rehabilitated Loan Refund - Amount Due To/ (From) Guarantor ..................................... 43
MR-10 Rehabilitated Loans - Principal Amount ............................................................................ 43
MR-10-A Rehabilitated Loans- Principal Amount (GA Retention) ............................................... 44
MR-10-A Rehabilitated Loans – Interest ........................................................................................ 45
MR-10-A Rehabilitated Loans - Other Charges ............................................................................. 45
MR-11 FFEL Consolidation Refund .................................................................................................. 45
MR-11 FFEL Consolidation Refund - Amount Due To/ (From) Guarantor................................... 45
Revised: September 2017
Page 4
Guaranty Agency Financial Report (GAFR) Guide
MR-11 FFEL Consolidation Refund - Principal Amount ............................................................... 45
MR-11 FFEL Consolidation Refund - Interest Amount ................................................................. 45
MR-11 FFEL Consolidation Refund – Other Amount ................................................................... 45
MR-11-A FFEL Consolidation Payoff – Principal Amount ........................................................... 45
MR-11-A FFEL Consolidation Payoff – Interest Amount ............................................................. 46
MR-11-B FFEL Consolidation GA Retention – Principal Amount................................................ 46
MR-11-B FFEL Consolidation GA Retention - Interest Amount ................................................... 46
MR-11-B FFEL Consolidation GA Retention - Other Amount...................................................... 46
MR-12 GA Administrative Wage Garnishment ................................................................................. 46
MR-12 Administrative Wage Garnishment - Amount Due To/ (From) Guarantor ........................ 47
MR-12 Administrative Wage Garnishment – Principal Amount .................................................... 48
MR-12 Administrative Wage Garnishment – Interest Amount ...................................................... 48
MR-12 Administrative Wage Garnishment – Other Amount ......................................................... 48
MR-12-A Administrative Wage Garnishment –Total Collected – Principal .................................. 48
MR-12-A Administrative Wage Garnishment –Total Collected – Interest .................................... 49
MR-12-A Administrative Wage Garnishment –Total Collected – Other ....................................... 49
MR-12-B Administrative Wage Garnishment – GA Retention – Principal.................................... 49
MR-12-B Administrative Wage Garnishment – GA Retention – Interest ...................................... 49
MR-12-B Administrative Wage Garnishment – GA Retention – Other ......................................... 49
MR-13 Default Collections ................................................................................................................ 50
MR-13 Default Collections - Amount Due To/ (From) Guarantor ................................................. 50
MR-13 Default Collections – Principal Amount ............................................................................ 51
MR-13 Default Collections – Interest Amount ............................................................................... 51
MR-13 Default Collections – Other Amount .................................................................................. 51
MR-13-A Default Collections –Total Collected – Principal........................................................... 52
MR-13-A Default Collections –Total Collected – Interest ............................................................. 52
MR-13-A Default Collections –Total Collected – Other ................................................................ 52
MR-13-B Default Collections – GA Retention – Principal ............................................................ 52
MR-13-B Default Collections – GA Retention – Interest ............................................................... 52
MR-13-B Default Collections – GA Retention – Other.................................................................. 52
MR-14 Bankruptcy Collections ......................................................................................................... 52
MR-14 Bankruptcy Collections - Amount Due To/ (From) Guarantor .......................................... 53
MR-14 Bankruptcy Collections – Principal Amount ...................................................................... 53
Revised: September 2017
Page 5
Guaranty Agency Financial Report (GAFR) Guide
MR-14 Bankruptcy Collections – Interest Amount ........................................................................ 54
MR-14 Bankruptcy Collections – Other Amount ........................................................................... 54
MR-15 Default FFEL Consolidated by DL Fee – Amount Due To/ (From) Guarantor .................... 54
MR-16 Total ....................................................................................................................................... 54
NON-PAYMENT ACTIVITY (Accounting Data) ................................................................................. 54
Treasury Offset Program (TOP) ............................................................................................................. 55
Principal Amounts Column............................................................................................................. 56
Interest Amounts Column ............................................................................................................... 56
Other Amounts Column .................................................................................................................. 56
MR-17 Treasury Offset ................................................................................................................... 56
MR-18 Non-Federal Share Offset ................................................................................................... 56
MR-19 Treasury Offset Reversals .................................................................................................. 57
Status Changes - Account Balance at Conversion .................................................................................. 57
Account Balance at Conversion – Principal Amounts Column ...................................................... 57
Account Balance At Conversion - Interest Amounts Column ........................................................ 58
Account Balance At Conversion - Other Amounts Column ........................................................... 58
MR-20 Default/LLR to Death and Disability ................................................................................. 58
MR-21 Default/LLR to Closed School/False Certification............................................................. 58
MR-22 Default/LLR to Bankruptcy ................................................................................................ 58
MR-23 Bankruptcy to Default/LLR ................................................................................................ 59
Agency Accruals (Accounting Entries) .................................................................................................. 59
Principal Amounts Column............................................................................................................. 60
Interest Amounts Column ............................................................................................................... 60
Other Amounts Column .................................................................................................................. 60
MR-24 Collection Terminations ..................................................................................................... 60
MR-25 Compromises ...................................................................................................................... 60
MR-26 Agency’s Accruals.............................................................................................................. 61
CHAPTER 2: GUARANTY AGENCY FINANCIAL REPORT MONTHLY/QUARTERLY ................ 62
Agency Accruals (Information) .............................................................................................................. 62
Principal Amounts Column............................................................................................................. 62
Interest Amounts Column ............................................................................................................... 62
Other Amounts Column .................................................................................................................. 63
MR-27 Default FFELP Loans Consolidated By Direct Loan Program .......................................... 63
Revised: September 2017
Page 6
Guaranty Agency Financial Report (GAFR) Guide
MR-28 Subrogated Loans ............................................................................................................... 63
MR-29 Default Loans Transferred Out ........................................................................................... 63
MR-30 Default Loans Transferred In ............................................................................................. 63
MR-31 Other Transactions Affecting Federal Receivable.............................................................. 63
MR-32 Ending Balance of Defaulted Loans ................................................................................... 64
Delinquency by Debt .............................................................................................................................. 67
MR-33 Not Delinquent ................................................................................................................... 67
MR-34 (1 – 90 Days) through MR-40 Over 10 Years .................................................................... 67
Bankruptcy Reporting ............................................................................................................................. 68
MR-41 Ending Balance on Bankruptcies........................................................................................ 68
MR-42 Bankruptcies Transferred Out ............................................................................................ 68
CHAPTER 3: GUARANTY AGENCY FINANCIAL REPORT ANNUAL ............................................. 69
Loans in Repayment (LIR) ..................................................................................................................... 70
AR- 1 Loans Guaranteed (Except Federal Consolidation) ............................................................. 70
AR- 2 All Loans Canceled (Except Federal Consolidation) ........................................................... 70
AR- 3 Federal Consolidation Loans Guaranteed ............................................................................ 71
AR- 4 Federal Consolidation All Loans Canceled .......................................................................... 71
AR- 5 Uninsured Loans .................................................................................................................. 71
AR- 6 Loans Transferred In ............................................................................................................ 71
AR- 7 Loans Transferred Out ......................................................................................................... 72
AR- 8 Default Claims Paid ............................................................................................................. 72
AR- 9 Bankruptcy Claims Paid ....................................................................................................... 73
AR-10 Death and Disability Claims Paid ....................................................................................... 73
AR-11 Closed School/False Certification Claims Paid .................................................................. 74
AR-12 Loans Paid-In-Full .............................................................................................................. 75
AR-13 Federal Stafford and Unsubsidized Stafford Interim Loans ................................................ 75
AR-14 Total Loans in Deferment Prior to First Payment ............................................................... 75
Financial Report Introduction ................................................................................................................. 76
Federal Fund ........................................................................................................................................... 76
AR-15 Beginning Balance (from AR-26 as of 9/30/XX) ............................................................... 76
AR-16 Investment Income .............................................................................................................. 76
AR-17 Reinsurance from ED .......................................................................................................... 77
AR-18 Collections of Defaulted Loans – Reinsurance Complement ............................................. 77
Revised: September 2017
Page 7
Guaranty Agency Financial Report (GAFR) Guide
AR-19 Insurance Premiums ............................................................................................................ 77
AR-20 Other Revenues ................................................................................................................... 78
AR-21 Claims Expensed to Lenders ............................................................................................... 78
AR-22 Recall of Federal Funds to the Restricted Account ............................................................. 78
AR-23 Transfer to Operating Fund for Default Aversion ............................................................... 78
AR-24 Transfer to Operating Fund for Account Maintenance Fee Error! Bookmark not defined.
AR-33, Transfer from Federal Fund for Account Maintenance Fee. ............. Error! Bookmark not
defined.
AR-25 Other Expenses.................................................................................................................... 79
AR-26 Ending Balance ................................................................................................................... 79
Supplemental Information....................................................................................................................... 79
AR-27 Amount transferred from Federal Fund to Operating Fund for Operating Expenses
(Repayable) ..................................................................................................................................... 79
AR-28 Amount received from Operating Fund to Repay Advance for Operating Expenses ......... 80
Operating Fund ....................................................................................................................................... 80
AR-29 Beginning Balance (from 9/30/XX) .................................................................................... 80
AR-30 Default Aversion Fee Revenue ........................................................................................... 80
AR-31 Loan Processing and Issuance Fee Revenue ....................................................................... 80
AR-32 Account Maintenance Fee Revenue Received from ED ..................................................... 80
AR-33 Transfer from Federal Fund for Account Maintenance Fee ................................................ 81
AR-34 Collections of Defaulted Loans less Reinsurance Complement (GA Collection Retention)
........................................................................................................................................................ 81
AR-35 Investment Income .............................................................................................................. 81
AR-36 Other Revenue (FFEL and Non-FFEL) .............................................................................. 82
AR-37 Collections of Defaulted Loans (Secretary Equitable Share) .............................................. 82
AR-38 Operating Expenses ............................................................................................................. 82
AR-39 Other Expenditures (FFEL and Non-FFEL) ....................................................................... 82
AR-40 Ending Balance ................................................................................................................... 83
Supplemental Information....................................................................................................................... 83
AR-41 Amount Received from Federal Fund for Operating Expenses (Repayable) ...................... 83
AR-42 Amount Repaid to Federal Fund for Operating Expenses .................................................. 83
Restricted Account .................................................................................................................................. 83
AR-43 Beginning Balance (from 9/30/XX) .................................................................................... 83
AR-44 Recall of Federal Funds from Federal Fund........................................................................ 84
Revised: September 2017
Page 8
Guaranty Agency Financial Report (GAFR) Guide
AR-45 Investment Income on Restricted Account ......................................................................... 84
AR-46 Investment Income on Restricted Account Expensed for Default Prevention .................... 84
AR-47 Ending Balance ................................................................................................................... 84
Balance Sheet Section (Federal Fund) .................................................................................................... 84
AR-48 Cash, Cash Equivalents and Investments ............................................................................ 84
AR-49 Restricted Account Cash, Cash Equivalents and Investments ............................................ 84
AR-50 Net Investment in Property, Plant, Equipment and Inventory ............................................ 84
AR-51 Accounts Receivable from the ED ...................................................................................... 85
AR-52 Other Assets ........................................................................................................................ 85
AR-53 Accounts Payable, Accrued Expenses, and Other Current Liabilities ................................ 85
AR-54 Accounts Payable to ED...................................................................................................... 85
AR-55 Other Liabilities .................................................................................................................. 85
AR-56 Allowances and Other Non-Cash Charges to Federal Fund................................................ 85
AR-57 Federal Fund Balance .......................................................................................................... 86
ATTACHMENT A – Federal Fund Itemized Schedule ......................................................................... 87
ATTACHMENT B – Operating Fund Itemized Schedule ...................................................................... 88
ATTACHMENT C – Balance Sheet Section Itemized Schedule ........................................................... 89
ATTACHMENT D – Guaranty Agency List .......................................................................................... 90
Revised: September 2017
Page 9
Guaranty Agency Financial Report (GAFR) Guide
INTRODUCTION
Guaranty agencies use the Guaranty Agency Financial Report to request payments from and
make payments to the Department of Education (ED) under the Federal Family Education Loan
(FFEL) Program, which is authorized by Title IV, Part B of the Higher Education Act of 1965, as
amended (HEA). ED also uses this information to monitor the agency’s financial activities, including
activities concerning its federal fund and operating fund. Guaranty agencies perform certain
activities in connection with the following types of loans under the FFEL Program.
The Robert T. Stafford Student Loan Program (also known as Federal Stafford Loans or
Subsidized Stafford Loans) Federal PLUS Loans, Federal Supplemental Loans for Students (Federal
SLS) Federal Consolidation Loans, and Unsubsidized Stafford Loans for Middle‐Income Borrowers
(Unsubsidized Stafford Loans).
NOTE: Loans guaranteed under Non‐FFEL Programs but administered by the guaranty
agency are not to be included in this report. An example of a non‐FFEL program is a student loan
program established by State law and operated entirely with State funds for individuals pursuing a
particular course of study.
Guaranty agencies must maintain detailed records to support each entry on the Guaranty
Agency Financial Report and be able to reconstruct the entries back to individual loan, borrower or
lender levels, or to specific guaranty agency level transactions. This includes keeping accurate
records of reinsurance payments and collections on defaulted loans at the loan and borrower level.
All records must be available for verification by the Secretary of Education or other authorized
representatives of the U.S. Government.
Information on the Guaranty Agency Financial Report must be consistent with and
comparable to relevant information reported to the National Student Loan Data System (NSLDS) by
the guaranty agency.
Guaranty agencies are required to maintain all records in the manner and for the period of
time set forth in the Department’s regulations. Detail records and reports are to be included in the
compliance audit requirements in accordance with 34 CFR 682.410(b) as required in the A‐133
Audit Guide.
These instructions provide information on how to complete each item on the Guaranty
Agency Financial Report. However, they do not restate in their entirety the laws,
regulations, and policy bulletins which may apply to an item on the form. The following
material should be consulted when completing this report: The Higher Education
Reconciliation Act of 2005
The Higher Education Act of 1965, as amended, and in particular, Title IV, Part B (20 U.S.C.
1071 et seq.)
The code of Federal Regulations, Department of Education, 34 CFR Part 682, Federal Family
Education Loan Program (formerly Guaranteed Student Loan and PLUS Programs), and 34
CFR Part 668, Student Assistance General Provisions, and
Revised: September 2017
Page 10
Guaranty Agency Financial Report (GAFR) Guide
For a complete listing of FSA communications: including FSA Bulletins and Dear Colleague
Letters go to: https://www.ifap.ed.gov
NOTE: The FFEL Program has frequent changes in laws, regulations, and policies. A guaranty
agency is responsible for complying with all current laws, regulations, and policies, and for
ensuring that any information provided on the Guaranty Agency Monthly/Annual Financial Report
conforms to them. The Department requires that a guaranty agency seek formal approval for any
decision(s) where the agency plans to deviate from procedures outlined in this guide. The request
is to include a statement establishing the basis of the request and the potential impacts to
regulatory compliance and financial reporting.
CERTIFICATION
Guaranty agency‐related financial transactions are now being recorded electronically in the
Federal Student Aid (FSA) Financial Management System (FMS). By completing the U.S. Department
of Education Organization Participation Agreement (OPA) you are certifying that your Guaranty
Agency Financial Report (ED Form 2000) is a legally binding document that will cover two years. By
signing and returning this form, you will no longer need to mail paper ‘signature pages’ after you
submit your Form 2000 electronically. A copy of the OPA can be found on the Financial Partners
Portal at https://fp.ed.gov/fms.html.
Original signature documents should be mailed to:
Federal Student Aid Finance Office
Accounting Operations Division
830 First Street, N.E., 5th Floor
Washington, DC 20202‐5455
If you have any questions, please contact us at: [email protected]
Revised: September 2017
Page 11
Guaranty Agency Financial Report (GAFR) Guide
DEFINITIONS
Capitalized interest: The FFEL Program allows a lender to convert interest to principal under
certain conditions. This report will refer to converted interest as “interest capitalized by the
lender.” Once the lender capitalizes interest, it is not separately referenced. Instead, the capitalized
interest and the original loan amount together are referred to as principal.
Guaranty agency claim interest: Interest calculated by the guaranty agency on the loan principal
while a lender’s insurance claim is being processed by the guaranty agency and which is eligible for
reinsurance from ED. It is paid to the lender by the guaranty agency as part of an insurance claim.
Non‐reinsured guaranty agency (GA) interest: Interest that is not reinsured by ED. This includes
guaranty agency claim interest which must be paid to the lender by the guaranty agency but is not
eligible for reinsurance from ED. However, the Secretary of Education is entitled to an equitable
share of any of the interest collected from a borrower.
Purchased interest: Interest a guaranty agency pays to a lender at the time an insurance claim is
paid. It consists of lender interest, guaranty agency claim interest and non‐reinsured GA interest, as
defined above. The guaranty agency must capitalize all purchased interest and treat it as principal.
Accrued interest: Interest calculated by the guaranty agency (not the lender) on the loan principal
on a collection account for collection from the borrower after an insurance claim is paid to a lender.
Principal: Once a claim has been paid to a lender the principal amount of the claim plus the
purchased interest paid to the lender is referred to as principal.
Revised: September 2017
Page 12
Guaranty Agency Financial Report (GAFR) Guide
CHAPTER 1: GUARANTY AGENCY
FINANCIAL REPORT MONTHLY
Guaranty agencies submit a monthly report to ED to request payments for default,
bankruptcy, death, disability, closed school, false certification, and lender of last‐resort‐loan
(default) claims. This report is also used to report unpaid school refunds and teacher loan
forgiveness discharges. An agency also uses the form to make payments for amounts due ED for
collections on default and lender‐of‐last‐resort loan (default) claims on which reinsurance was
paid, and for refunding amounts previously paid for reinsurance claims. Reference the Financial
Management System Guaranty Agency Guide posted at: https://www.fp.ed.gov/fms.html, for
completing the on‐line forms.
Prior to July 1, 2006, guaranty agencies were required to file a claim for reimbursement
within 45 days after the guaranty agency discharged its insurance obligation on the loan, however,
effective for July 1, 2006 the claim filing time has been reduced to 30 days. In order to provide a
mechanism for guaranty agencies to comply with the 30‐day provision, ED implemented a
Supplemental claims invoicing process. The supplemental claims process will allow a guaranty
agency to report reinsurance claims on a bi‐monthly basis. Procedures for supplemental claims
processing are available via www.fp.ed.gov. The Supplemental Claims Invoice process has no
impact on regular monthly GAFR reporting, i.e., all monthly activity, including the Supplemental
Claims Invoice amounts should be included in the monthly GAFR submission.
The Monthly Report requires that the guarantor report summary information on all claims,
collections, and related activity for a given month. A guaranty agency can submit only one monthly
report for any month. Additional submissions for the same monthly period will be rejected and the
agency will be requested to submit the material in its next monthly submission.
After ED accepts an agency’s monthly submission, no further corrections or adjustments can
be made. Errors have to be rectified by submitting the appropriate information in a later
submission.
When the monthly report is accepted, the guaranty agency can access their statement of
account, which will reflect the financial activity that has occurred during the month. Any net
payment due an agency in relation to this processing is electronically transferred to the agency’s
financial institution approximately 30 days after ED receives an acceptable report. Funds owed to
ED is payable immediately.
Unless otherwise specified, report only on activities on loans guaranteed under the FFEL
Program at the time the loan guarantee was issued and which are eligible for, or on which
reinsurance was paid.
Loans guaranteed under other programs administered by the guaranty agency are not to be
included in this report.
Enter all dollar amounts greater than zero to the nearest cent, and include the decimal
point.
Revised: September 2017
Page 13
Guaranty Agency Financial Report (GAFR) Guide
Reinsurance, Trigger Figure and Collections
FFEL Program loans originated by an eligible lender are insured by a guaranty agency.
When a lender is unable to collect on a loan, it files an insurance claim with the guaranty agency.
Guaranty agencies pay lender insurance claims on defaulted loans and insurance claims based on
the chart below::
The Consolidated Appropriations Act, 2016, Pub. L. 114‐113, signed on December 18, 2015
changed the maximum reinsurance percentage for guaranty agencies in the FFEL program. The Act
changes the ED to GA reimbursement to 100%. Beginning with the December 2015 GAFR,
guaranty agencies were able to request reinsurance at the higher rate for new default claims.
Supplemental claim requests by lenders on previously paid default claims will be reimbursed at the
rate in effect at the time reinsurance was paid and are not eligible for the 100% rate.
Description
Lender Insurance (Loan 1st
Disbursed Before 10/1/93)
Lender Insurance (Loan 1st
Disbursed On/After
10/1/93
and Before 10/1/98)
Lender Insurance (Loan 1st
Disbursed On/After
10/1/98
and Before 7/1/06)
Lender Insurance (Loan 1st
Disbursed On/After
7/1/06) and Before
7/1/10)
Lender Insurance for
Exempt Claims (Loan 1st
Disbursed Before 7/1/06)
Lender Insurance for
Exempt
Claims (Loan 1st Disbursed
On/After 7/1/06)
Loan
Amount/
Claim
Amount
$1,000.00
$1,000.00
Reimbursemen
t Rate (GA to
Lender)
100%
98%
Reimburs
ement
Amount
to Lender
Reimbursemen
t Rate (ED to
GA)
Reimburseme
nt Amount to
GA
$1,000.00
100%
$1,000.00
$980.00
100%
$980.00
$1,000.00
98%
$980.00
100%
$980.00
$1,000.00
97%
$970.00
100%
$970.00
$1,000.00
98%
$980.00
100%
$980.00
$1,000.00
100%
$1,000.00
100%
$1,000.00
Note: This chart does not take into consideration “trigger figures rates,” i.e., when claims exceed 5%
or 9% of loans in repayment.
ED reimburses the agency for part of its losses. This report is used to request these
reimbursements. ED reimburses guaranty agencies on the following types of claims:
Default
Exempt and lender‐of‐last‐resort loan (defaults)
Bankruptcy (Chapters 7, 11, 12 and 13)
Revised: September 2017
Page 14
Guaranty Agency Financial Report (GAFR) Guide
Death or disability
Closed school or false certification
Unpaid refunds
Discharges (teacher loan forgiveness)
Definitions of each of these claim types are given in the instructions. In general, ED reimburses
a guaranty agency for 100 percent of its losses of all claim types above except default claims, which
are subject to reduced reimbursement rates. For purposes of reinsurance, a guaranty agency’s
losses consist of loan principal, lender interest and guaranty agency claim interest. Non‐reinsured
GA interest is not eligible for reinsurance, even though the guaranty agency must pay it to lenders.
Default claims on loan guarantees transferred to a guaranty agency under a plan approved by
the Secretary, regardless of the first disbursement date, are always reimbursed at 100, 90 or 80
percent.
Exempt claims are defined as claims with respect to loans for which it is determined that the
borrower (or the student on whose behalf a parent has borrowed), without the lender’s or the
institution’s knowledge at the time the loan was made, provided false or erroneous information or
took actions that caused the borrower or the student to be ineligible for all or a portion of the loan
or for interest benefits there on. Exempt claims, on loans disbursed on or after July 1, 2006, are
reimbursed for 100 percent of a guaranty agency’s reinsured losses.
Lender‐of‐last‐resort loans are loans made only to students who are otherwise unable to obtain
loans. A lender‐of‐last‐resort loan (default) claim is one on which the borrower failed to make an
installment payment when due, as defined in the regulations. These claims are always reimbursed
for 100 percent of their reinsured losses.
Default claims are subject to certain “trigger figures” which results in a reduced reimbursement
rate. At the beginning of each federal fiscal year, ED calculates the trigger figure for each guaranty
agency. The trigger figures are equal to 5 percent and 9 percent of the guaranty agency’s loans in
repayment at the end of the prior fiscal year.
When default claim losses exceed 5 percent of the loans in repayment it “triggers” ED to
reimburse the agency for only—
90 percent of its default claim losses on loans first disbursed before October 1, 1993;
When default claim losses exceed 9 percent of loans in repayment, it “triggers” ED to reimburse the
agency for only—
80 percent of an agency’s default claim losses on loans first disbursed before October 1,
1993;
These reduced rates are generally referred to as “reduced reimbursement rates.” The difference
between the default claim amount paid to the lender and the reinsurance amount paid to GA at the
“reduced reimbursement rate” is the agency’s “reinsurance complement”.
Once a default claim is paid to a lender, the guaranty agency becomes the holder of the loan and
must seek to collect on the loan from the borrower. Since ED reimburses a guaranty agency on
defaults, the guaranty agency must return to ED a portion of the amount it collects from the
Revised: September 2017
Page 15
Guaranty Agency Financial Report (GAFR) Guide
borrower. If ED reimbursed the guaranty agency at 98, 95, 90, 88, 85, 80, 78, or 75 percent of the
default claim paid to the lender, then the agency’s complement on collections from borrowers
would be 2, 5, 10, 12, 15, 20, 22 or 25 percent.
The guaranty agency is allowed to retain 16% of the amount collected.
The amount of the collections, which a guaranty agency must return to ED, is referred to as the
“Secretary’s (of Education) equitable share” of collections. The formula for calculating the Federal
share of collections is [total collected less reinsurance complement less GA retention = Federal
share of collections].
Revised: September 2017
Page 16
Guaranty Agency Financial Report (GAFR) Guide
Financial Processing
When ED accepts an agency’s monthly report, the system generates a statement of account
that provides financial information related to its monthly submission. This statement is a summary
of all monthly activity reported since the last statement was generated. Examples of information the
statement provides are: the amount of money ED owes the agency for reinsurance and other claims;
the agency’s standing in relation to a reduction in its reimbursement percentage (the “trigger
figure”); and the amount of money the agency owes ED for collections on defaulted loans.
Reinsurance claim transactions are considered by ED to occur on the date a guaranty
agency’s monthly report is paid by electronic funds transfer (EFT) by ED.
An agency’s “trigger figure” is adjusted for the fiscal year in which the approval date falls.
This is not necessarily the same fiscal year in which:
the guaranty agency paid the claim to the lender;
the guaranty agency reported the transactions to ED; or
the guaranty agency received the reinsurance payment from ED.
Revised: September 2017
Page 17
Guaranty Agency Financial Report (GAFR) Guide
Trigger figure calculation formula:
$683,877,349.00
$ 34,193,867.45
$ 61,548,961.41
$ 19,826,542.97
$ 19,346,754.82
1,327,585.47
Loans In Repayment2
5% Trigger = Loans In Repayment * 5%
9% Trigger = Loans In Repayment * 9%
Amount Requested Fiscal Year to Date (FYTD)3
Dollars Paid Fiscal Year to Date4
Rehabilitated Loans Applied ‐ FYTD5
Rehabilitated Loans Unapplied – Carry Over CFY5
Rehabilitated Loans Applied – PFY6
Refunds Applied – FYTD7
Refunds Unapplied – Carry Over CFY8
Refunds Applied – PFY9
Trigger Basis Amount10
Percent of Request Paid11
Trigger Rate12
$
$
32,696.30
$ 17,986,473.05
97.58%
2.63%
2 Loans In Repayment [AR‐1 (‐) AR‐2 (+) AR‐3 (‐) AR‐4 (‐) AR‐5 (+) AR‐6 (‐) AR‐7 (‐) AR‐8 (‐) AR‐9
(‐) AR‐10 (‐) AR‐11 (‐) AR‐12 (‐) AR‐13 (‐) AR‐14]
3 Amount Requested Fiscal Year To Date = FYTD Total MR‐1‐A, “Other Amounts.”
4 Dollars Paid Fiscal Year To Date = FYTD Total MR‐1‐A, “Principal Amount”.
5 Rehabilitated Loans Applied FYTD = FYTD Total MR‐10, “Default Principal Amount”, until GA hits
5% trigger.
5 Rehabilitated Loan Unapplied – Carry Over CFY. After GA hits 5% trigger, rehabilitated loans will
be stored for credit to the next fiscal year.
6 Rehabilitated Loan Applied – PFY. This field will be populated when a GA hits the 5% trigger in the
prior fiscal year and they had an amount in “Rehabilitated Loan Unapplied – Carry Over CFY.”
7 Refunds Applied FYTD = FYTD Total MR‐7‐A, Partial Refunds, Defaults, Principal Amount + FYTD
MR‐5‐A, Repurchases CFY, Defaults, Principal Amount, if GA has a repurchase agreement.
8 Refunds Unapplied = Carry Over CFY. After GA hits 5% trigger, refunds will be stored for credit to
the next fiscal year.
9 Refunds Applied = Carry Over PFY. This field will be populated when a GA hit the 5% trigger in the
prior fiscal year and they had an amount in “Refunds Unapplied – Carry Over CFY.”
10 Trigger Basis Amount = Dollars Paid FYTD less Rehabilitated Loans Applied less Refunds Applied.
11 Percent of Request Paid = Dollars Paid FYTD/Amount Requested FYTD.
12 Trigger Rate = (Trigger Basis Amount/Loans in Repayment)*100.
Revised: September 2017
Page 18
Guaranty Agency Financial Report (GAFR) Guide
Collections, on defaulted loans, are considered submitted to ED on the date the monthly
report is received by ED. Amounts due the agency are sent to the agency’s financial institution via
electronic funds transfer (ACH) within 30 days after the date of receipt of an error‐free report. ED
will process an agency’s forms in the order they are accepted.
ED may offset the amounts that a guaranty agency owes ED against amounts ED owes the
agency. In most cases, this will result in the agency receiving an electronic funds transfer for the
difference. In those cases where the agency still owes ED money after offset, then the agency’s
monthly statement will reflect the balance due ED. The agency may also elect to have the balance
deducted from by Account Maintenance Fees payments that are processed during the applicable
reporting period. Otherwise, the GA should remit funds owed to ED within two business days of
submitting the monthly report.
An agency must submit payments to ED via Fedwire or on‐line via Pay.gov.
For additional information or instructions, contact the Guaranty Agency Reporting Team via
e‐mail at [email protected].
Please consult the Guaranty Agency User Guide for accessing the Financial Management
System (FMS) when completing the GAFR web application. The user guide can be found at this site:
https://www.fp.ed.gov/fms.html.
For Fiscal Month Of Reporting
When entering the federal fiscal month and federal fiscal year of the month through which
activity is being reported always use numbers to stand for the federal fiscal month and year and
enter the date as MM/CCYY. An example of the fiscal month and federal fiscal year is as follows:
October 2016 = 01/2016 and September 2016 = 12/2016
Line items MR‐1 through MR‐23 contain guaranty agency monthly activity and any
corrections made for prior periods. Line items MR‐24 through MR‐26 contain guaranty agency
monthly activity.
Revised: September 2017
Page 19
Guaranty Agency Financial Report (GAFR) Guide
MR – 1 Claims Paid
This section is used to request reimbursement for default and other FFEL program claims
paid by the guaranty agency to lenders for loan principal and interest. The categories of FFEL
program claims are: default, exempt (include claims where the student has been convicted of, or
plead nolo contendere or guilty to, a crime involving fraud in obtaining title IV student aid and
claims where the borrower is a victim of identity theft), lender‐of‐last‐resort, bankruptcy, death,
disability, closed school, false certification, unpaid refunds and (teacher loan forgiveness)
discharges.
Include the original reimbursement request and any supplemental requests. Additional
requests are used in situations where either the lender or the guaranty agency did not receive the
full payment when the claim was originally processed by the guaranty agency or ED. This section is
also used to request additional reinsurance on a default claim when the status changes to exempt
and the guaranty agency is entitled to 100 percent reimbursement. Status changes due to death,
disability, closed school, false certification, or bankruptcy should be report on MR‐3.
If the agency receives a borrower payment from the lender after the date of the lender’s claim
payment, reduce the reinsurance claim request amount (MR‐1‐A, Claims Paid) and the lender claim
amount (MR‐1‐A, Other Amounts) by the payment amount.
If the agency receives a borrower payment from the lender after the guaranty agency
requests reimbursement from ED, treat the payment as a refund and report the payment amount in
MR‐7, Partial Refunds‐CFY if the reinsurance is paid in the current fiscal year. If the reinsurance is
paid in a prior fiscal year, report the payment amount in MR‐8, Partial Refunds‐PFY.
If the agency receives a payment directly from the borrower, after the date of the lenders’
claim payment, treat the payment as a collection and report these amounts in MR‐12, GA
Administrative Wage Garnishment, MR‐13, Default Collections, or MR‐14, Bankruptcy Collections,
as appropriate.
If the guaranty agency paid a default or lender‐of‐last‐resort loan (default) claim to a lender
because the borrower could not be located, then it can request reimbursement on the loan only if
the agency certifies that the lender has made a diligent attempt to locate the borrower through the
use of reasonable skip‐tracing techniques, including contact with the school the borrower attended,
in accordance with the HEA and ED regulations. The guaranty agency must certify that skip‐tracing
attempts were made at the time reimbursement is requested.
This amount reported in MR‐1, Claims Paid does not include amounts paid to lenders for
other items such as late charges, collection costs, and attorney’s fees. Also excluded is non‐
reinsured GA interest.
The Secretary pays accrued interest on a bankruptcy claim if the guaranty agency was
required to hold the loan until it was discharged in bankruptcy. A bankruptcy claim paid to a lender
prior to July 23, 1992 may meet this condition. A Chapter 7, 11 or 12 bankruptcy claim paid to the
lender when the borrower filed for discharge on the grounds of undue hardship, and the loan is
subsequently discharged would meet this condition. For such a bankruptcy claim, the guaranty
agency is entitled to receive interest, which accrued (but was held in forbearance) on the
discharged loan from the date the guaranty agency paid the lender through the earlier of:
Revised: September 2017
Page 20
Guaranty Agency Financial Report (GAFR) Guide
60 days after the date the loan was discharged or
The date the agency’s reinsurance claim is paid by ED.
The lender should repurchase bankruptcy claims paid to lenders prior to July 23, 1992, on
which the borrower has not filed for a hardship discharge, and the reinsurance amount has been
returned to
ED.
In the case where the agency submits its claim less than 60 days after the loan was
discharged, the agency will be unable to calculate the total amount of accrued interest due because
it does not know the date that ED will authorize the reinsurance claim to be paid. Therefore, the
agency may calculate the amount of interest that accrued through the date the agency files the
reinsurance claim and report it in this item. After the agency received payment from ED for the
claim, the agency may calculate the additional interest that has accrued from the date the agency
submitted the claim through the earlier of the date ED authorized payment of the claim or the 60th
day after the loan was discharged.
Unless an agency is, otherwise, notified by ED, the date ED authorized payment of a claim is
the date the agency received the payment. The additional interest amount may be claimed in this
item.
If the guaranty agency is holding a bankruptcy claim paid to a lender and the Bankruptcy
Court proceedings have been concluded without the loan being discharged, then the guaranty
agency may not file for reinsurance on the loan as a bankruptcy. Instead, the loan goes back into
repayment, with any interest that accrued during the bankruptcy proceedings being capitalized.
The loan must either be repurchased by a lender or collected on by the guaranty agency in
accordance with program regulations. If the loan later goes into default, the guaranty agency may
file a default reinsurance claim with ED at that time.
For a loan on which a bankruptcy claim is paid to a lender on or after July 23, 1992 and the
guaranty agency was not required to hold the claim, the guaranty agency can file for reinsurance at
once. The guaranty agency is not entitled to interest that accrues on such a bankruptcy claim
between the time the guaranty agency paid the lender and ED pays the agency.
Example: The guaranty agency payment to the lender is $9,800, based on the lenders’
requested amount of $10,000 on a default loan (not exempt or LLR) first disbursed on or after
10/1/98 and before 7/1/06 (i.e., 95% reinsurance reimbursement rate); a $2,000 death/disability
claim request from the lender; and a $100 borrower payment from the lender after the lender’s
default claim was paid but prior to guaranty agency’s request for reinsurance.
ITEM
NO.
CATEGORY
MR‐1
Claims Paid
MR‐1‐
A
Defaults – Net
Revised: September 2017
AMOUNT DUE
TO/(FROM)
GUARANTOR
PRINCIPAL
AMOUNT
11,700.00
INTEREST
AMOUNT
Effect on
Federal
Receivable *
OTHER
AMOUNTS
9,700
9,800.00 9, 700.00
Page 21
Guaranty Agency Financial Report (GAFR) Guide
MR‐1‐
B
Exempt/Lender‐
of‐last‐resort
MR‐1‐
C
Death/Disability
MR‐1‐
D
MR‐1‐
E
MR‐1‐
F
MR‐1‐
G
‐
2,000.00
Closed
School/False
Certification
Bankruptcy
Unpaid Refunds
Discharges
‐
‐
‐
‐
‐
Note: This column is for reference purposes only and is not an actual column on Forms 2000.
MR 1 Claims Paid - Amount Due To/ (From) Guarantor
This amount is the total reimbursement the guaranty agency is requesting from ED (original
and additional requests) for all types of claims (i.e., default, exempt, lender‐of‐last‐resort, death,
disability, closed school, false certification, bankruptcy, unpaid refunds and teacher loan
forgiveness discharges). This is a system‐calculated field that does not allow guaranty agency input.
MR-1-A Defaults - Principal Amount
Enter amounts for default claims (original and additional requests) for this reporting
period. A default claim is one on which the borrower and endorser, if any, or joint borrowers on a
PLUS or Consolidation loan, failed to make an installment payment when due, or to meet other
terms of the promissory note, if the Secretary or guaranty agency finds it reasonable to conclude
that the borrower or endorser, if any, no longer intends to honor the obligation to repay—
for loans delinquent on/after 10/7/98, provided that this failure persists for (1) 270 days
for a loan payable in monthly installments; or (2) 330 days for a loan payable in less
frequent installments
for loans delinquent before 10/7/98, provided that this failure persists for (1) 180 days for
a loan payable in monthly installments; or (2) 240 days for a loan payable in less frequent
installments or
The total reimbursement request amount from ED is calculated by multiplying amounts
paid to lenders, for default claims, by the appropriate reinsurance reimbursement rate (based on
date of the loans first disbursement) and taking into consideration whether or not the agency has
hit either their 5% or 9% trigger.
MR-1-A Defaults - Other Amounts
Revised: September 2017
Page 22
Guaranty Agency Financial Report (GAFR) Guide
This line item is the total amount of original and additional payments made by the guaranty
agency to lenders for default claims. The amount should include principal and interest paid to
lenders, and guaranty agency claim interest, for default claims.
Example: The guaranty agency payment to the lender is $9,800, based on the lender
requested amount of $10,000 on a default (not exempt or LLR) loan first disbursed on or after
10/1/98 and before 7/1/06. The guaranty agency’s reporting would be as follows:
ITEM NO. CATEGORY
MR‐1
Claims Paid
MR‐1‐A
Defaults – Net
AMOUNT
DUE TO/(FROM)
PRINCIPAL AMOUNT
GUARANTOR
OTHER AMOUNTS
$9,800
$9,800
$9,800.00
MR-1-B Exempt/Lender-of-last-resort- Principal Amount
Enter amounts for exempt and lender‐of‐last‐resort (default) claims (original and additional
requests) for this reporting period.
Exempt claims are filed in situations where the lender determines that the borrower or the
student on whose behalf a parent has borrowed, without the lender or school’s knowledge at the
time the loan was made, provided false or erroneous information or took actions that caused the
student or borrower to be ineligible for all or a portion of a loan. Also include claims where the
student has been convicted of, or plead nolo contendere to, a crime involving fraud in obtaining title
IV student aid and cases where the borrower is a victim of identity theft. Exempt claims are exempt
from the agency’s reinsurance trigger calculation, are insured at 100 percent and are reimbursed at
100 percent for loan disbursements made on/after July 1, 2006.
Lender‐of‐last‐resort loans are loans that were made to students who were otherwise
unable to obtain loans. A lender‐of‐last‐resort (default) claim is one on which the borrower and
endorser, if any, failed to make an installment payment when due, or to meet other terms of the
promissory note. Lender ‐of‐last‐resort loans are reimbursed at 100%.
Example: The lender’s request to the guarantor is $1,000 on an exempt claim that was first
disbursed on or after 7/1/06, and a lender‐of‐last‐resort claim for $5,000. The amount reported in
MR‐1‐B would be $1,000 plus $5,000. The guaranty agency’s reporting on would be as follows:
AMOUNT DUE
CATEGORY
ITEM
NO.
MR‐1
Claims Paid
MR‐1‐A
Defaults – Net
MR‐1‐B
Exempt/Lender‐of‐last‐resort
MR‐1‐C
Death/Disability
Revised: September 2017
TO/(FROM)
GUARANTOR
PRINCIPAL
AMOUNT
INTEREST
AMOUNT
OTHER
AMOUNTS
6,000.00
0.00
6,000.00
$0.00
Page 23
Guaranty Agency Financial Report (GAFR) Guide
MR‐1‐D
Closed School/False Certification
$ 0.00
MR‐1‐E
Bankruptcy
$ 0.00
MR‐1‐F
Unpaid Refunds
$ 0.00
MR‐1‐G
Discharges
$ 0.00
MR-1-C Death/Disability - Principal Amount
Enter amounts for death and total disability claims (original and additional requests) for
this reporting period. A death claim is one on which the loan is discharged due to the borrower’s
death. This includes a Federal PLUS loan for a death claim paid to a lender when a student, on
whose behalf a parent received the Federal PLUS loan, dies. A disability claim is one on which the
loan is conditionally discharged due to the total and permanent disability of the borrower.
If a death or disability claim is filed after a default claim was paid to the lender, and the
reinsurance claim was paid at less than 100 percent of principal and interest, then the complement
of the reinsurance may be requested using MR‐3, Status Change. If a death or disability claim is filed
after a default or lender‐of‐last‐resort loan (default) claim was paid at 100 percent, this change in
status is reported in the Non‐Payment Activity section, MR‐20, Default/Lender of Last Resort to
Death or Disability.
Beginning July 1, 2013, upon notification by the Department that the borrower qualifies for
a Total and Permanent Disability (TPD) Discharge, the guaranty agency will notify the borrower of
the discharge and refund any payments that were made to the GA on or after the effective date of
the discharge or effective date of the grant of disability by the Veterans Administration. The refund
should be reported on this line.
MR-1-D Closed School/False Certification - Principal Amount
Enter amounts for closed school or false certification claims (original and additional
requests) for this reporting period. A closed school claim is one on which a claim is paid to a lender
because the student was unable to complete the program in which the student was enrolled due to
the closure of the institution. A false certification claim is one on which a claim is paid to a lender
because the student’s eligibility to borrow under the FFEL Program was falsely certified by an
eligible institution of higher education.
If the borrower files a closed school and/or a false certification claim, after a default claim
was paid to the lender, and the reinsurance claim was paid at less than 100 percent of principal and
interest, the complement of the reinsurance may be requested using line MR‐3, Status Change. If the
borrower files a closed school or false certification claim after a default or lender‐of‐last‐resort loan
(default) claim was paid to the lender and the reinsurance claim was paid at 100 percent, even
though no further reinsurance is due the agency, this change in status to closed school or false
certification must be reported in the Non‐Payment Activity section, MR‐21, Default/Lender of Last
Resort to Closed School/False Certification.
Revised: September 2017
Page 24
Guaranty Agency Financial Report (GAFR) Guide
MR-1-E Bankruptcy - Principal Amount
Enter amounts for Chapter 7, 11, 12 and 13 claims (original and additional requests) for this
reporting period.
Chapter 7, and 11 bankruptcy claims are paid to a lender if:
the borrower has been in repayment status over 7 years from the date on which the
bankruptcy petition is filed for cases commencing before October 8, 1998 or
the borrower begins an action to receive a discharge on the grounds of undue hardship.
Chapter 12 and 13 bankruptcy claims are claims paid to a lender when a borrower files for
relief under those chapters of the U.S. Bankruptcy Code.
If the borrower files for bankruptcy after a default claim was paid to the lender, and the
reinsurance claim was paid for less than 100 percent of principal and interest, then the complement
of the reinsurance may be requested using line MR‐3, Status Change. If the borrower files for
bankruptcy after a default or lender‐of‐last‐resort loan (default) claim was paid to the lender and
the reinsurance claim was paid at 100 percent, even though no further reinsurance is due the
agency, this change in status to bankruptcy must be reported in the Non‐ Payment Activity section,
MR‐22, Default/Lender of Last Resort to Bankruptcy.
During the course of the bankruptcy proceedings, the agency must report and return to ED,
any amounts received at the direction of the Bankruptcy Court in MR‐14, Bankruptcy Collections.
Once bankruptcy proceedings are concluded and the loan is discharged, the agency must report and
return to ED any amounts received at the direction of the Bankruptcy Court in MR‐14, Bankruptcy
Collections.
If the loan is not discharged, it must either be repurchased by a lender or collected on by the
guaranty agency in accordance with program regulations. The loan reverts to an “in repayment”
status at the lender. If the borrower does not repay the loan after the repurchase, then the loan
could go into default. The guaranty agency could pay a default claim on it and file a default
reinsurance claim using MR‐1. This assumes all applicable lender and guaranty agency policies
concerning defaulted loans were followed.
In addition to arranging the lender’s repurchase of the loan, the agency must refund to ED
any bankruptcy reinsurance payment it received and report it on MR‐5, Repurchases ‐ CFY (current
fiscal year) or MR‐6, Repurchases ‐ PFY (prior fiscal year). Also, report the account balance at
conversion (from bankruptcy to default) in MR‐23, Bankruptcy to Default/Lender‐of‐last‐resort, if
the loan was originally purchased as a default and collections resume due to dismissal of the
bankruptcy proceedings.
MR-1-F Unpaid Refunds - Principal Amount
Enter amounts for unpaid (school) refunds (original and additional requests) for this
reporting period. An unpaid refund, in the case of an open or closed school, is a discharge of a
former or current borrower’s (and any endorser’s) obligation to repay that portion of a FFEL loan
(disbursed on or after January 1, 1986) equal to the refund that should have been made by the
Revised: September 2017
Page 25
Guaranty Agency Financial Report (GAFR) Guide
school. Include in this amount any accrued interest and other charges associated with the unpaid
refund, which are also discharged.
In accordance with the unpaid refund provisions, calculate the amount paid to lenders for
these refunds. Add to this figure the amount of the reinsurance complement requested by the
agency on loans it holds for which the borrower qualifies for an unpaid refund.
Also, see MR‐31, Other Transactions Affecting Federal Receivable, to report the federal
receivable portion of unpaid refund discharges on guaranty agency held loans.
MR-1-G Discharges
This line item will be used to request reimbursement due to teacher loan forgiveness
discharges and partial discharges of consolidation loans.
Teacher loan forgiveness is a discharge of a borrower’s obligation to repay up to $5,000 or
up to $17,500 of their outstanding student loan balances according to 34 CFR 682.216. Forgiveness
is available to a borrower who has no outstanding loan balance under the FFEL Program or the
Direct Loan Program on October 1, 1998 or has no outstanding loan balance on the date he or she
obtains a loan after October 1, 1998. The Secretary pays the guaranty agency a percentage of the
discharge that is equal to the complement of the reinsurance percentage paid on the loan. The
payment may also include interest that accrues on the discharged amount during the period from
the date the guaranty agency received payment from the Secretary to the date on which the
guaranty agency determines that the borrower is eligible for the teacher loan forgiveness.
A partial discharge of a Consolidation loan occurs when a loan was obtained jointly by a
married couple if one of the borrowers dies or becomes totally and permanently disabled. The
amount that is eligible to be discharged is equal to the portion of the outstanding balance
attributable to the deceased or disabled borrower as of the date the borrower died or became
totally and permanently disabled.
In accordance with the teacher loan forgiveness provisions and the partial discharge of
Consolidation loans provisions, calculate the amount paid to lenders for discharges. Add to this
figure the amount of the reinsurance complement requested by the agency on loans it holds for
which the borrower qualifies for teacher loan forgiveness discharge or partial discharge of a
Consolidation loan.
Enter amounts for teacher loan forgiveness discharges and partial discharges of
Consolidation loans, (original and additional requests) for this reporting period.
Example: A guaranty agency pays lenders for three teacher loan forgiveness discharges:
Borrower
#1
#2
#3
Subtotal
Amount
$ 5,000,00
$ 3,000.00
$ 5,000.00
$ 13,000.00
Revised: September 2017
Page 26
Guaranty Agency Financial Report (GAFR) Guide
In addition, the guaranty agency has two requests for teacher loan forgiveness discharges on loans
they hold:
Borrower
#4
#5
Subtotal
Reinsurance
GA
Complement
Reimbursement
Amount
$ 1,000,00
1,000 ‐ (1000*98%)
$ 20.00
$ 500.00
500 ‐ (500*95%)
$ 25.00
$ 45.00
The amount entered in MR‐1‐G, Discharges, Principal Amount is $13,045.00.
ITEM NO.
CATEGORY
AMOUNT DUE
TO/(FROM)
GUARANTOR
PRINCIPAL
AMOUNT
MR‐1
Claims Paid
MR‐1‐A
Defaults – Net
MR‐1‐B
Exempt/Lender‐of‐last‐resort
MR‐1‐C
Death/Disability
MR‐1‐D
Closed School/False Certification
$ 0.00
MR‐1‐E
$ 0.00
MR‐1‐F
Bankruptc
y
Unpaid Refunds
MR‐1‐G
Discharges
INTEREST
AMOUNT
OTHER
AMOUNTS
$ 30, 525.00
$ 9,500.00
$ 10,000.00
$ 6,000
$ 2,000.00
$ 0.00
$ 13,045.00
The guaranty agency must also report the federal receivable portion of the forgiveness
discharge or partial discharges of Consolidation loans in MR‐31, Other Transactions Affecting the
Federal Receivable.
MR-2 Borrower Payment Return (Closed School/False
Certification)
This category is used to refund collections, including wage garnishment collections, to a
guaranty agency, which were received on a closed school or false certification claim and returned to
the borrower after reinsurance was paid. These collections must be returned to the borrower. Also,
include amounts for collections received by the lender and returned to the borrower by the
guaranty agency after claim payment. This policy applies only to a loan, disbursed in whole or in
part, on or after January 1, 1986. This is a supplemental request for reinsurance, directly related to
borrower payments and not a line item for initial reporting of closed school/false certification
reinsurance requests.
This scenario is most likely to occur on accounts that were originally paid as defaults where
the borrower made payments to the guaranty agency, and subsequently there was a change in
status to closed school or false certification. Under this scenario, if the original default claim was
reported in MR‐1, Claims Paid, and was paid at less than 100 percent and the agency reported it in
MR‐3, Status Change, for supplemental insurance, the reporting in this Section would be at the 100
percent reimbursement rate.
Revised: September 2017
Page 27
Guaranty Agency Financial Report (GAFR) Guide
On closed school or false certification claims, all collections received by the lender and
returned to the borrower by the agency before reinsurance was paid are reported in MR‐1, Claims
Paid.
The borrower is entitled to a full refund of these collections and ED must refund the entire
collection amount to the guaranty agency. Collections refer to collection of: principal, purchased
interest (lender interest, guaranty agency claim interest and non‐reinsured GA interest), accrued
interest, and any collection charges permitted by law, regulation, or the borrower’s promissory
note.
MR-2 Borrower Payment Return – Amount Due To/ (FROM) Guarantor
MR‐2, Borrower Payment Return ‐ Amount Due To/ (From) Guarantor is the sum of
amounts reported in MR‐2, Principal Amount, Interest Amount, and Other Amounts. This is a
system‐calculated field that does not allow guaranty agency input.
MR-2 Borrower Payment Return - Principal Amount
Enter amount of collections that were applied to the portion of each borrower’s account
that represents principal and purchased interest. Do not include amounts paid for other charges
such as collection costs, late charges and attorney’s fees.
MR-2 Borrower Payment Return - Accrued Interest
Enter amount of collections that were applied to the portion of each borrower’s account
that represents accrued interest. MR‐2 Borrower Payment Return ‐ Other Charges
Enter amount of collections that were applied to the portion of the borrower’s account that
represents other charges. Include collection costs, late charges and attorney’s fees.
MR-3 Status Changes
This category is used for reporting on default claims originally paid at a reduced
reinsurance rate but which are now eligible for full reimbursement because the borrowers’ claim
status has changed. The agency is entitled to receive reimbursement for 100 percent of principal,
lender interest, and guaranty agency claim interest on the following types of claims:
Death or disability;
Closed school, and false certification, and
Bankruptcy
If a guaranty agency pays a default claim for which it receives less than 100 percent
reinsurance, and the status of the borrower claim changes to one of those listed above, the guaranty
agency can request supplemental reinsurance on the line items below.
Revised: September 2017
Page 28
Guaranty Agency Financial Report (GAFR) Guide
To request additional reinsurance on a default claim when the status changes to exempt (for
loans disbursed on or after July 1, 2006), report the additional amount in MR‐1‐B, Exempt/Lender
of Last Resort.
Although this category is used to request the additional portion due the guaranty agency, the
account balance at conversion must also be reported in MR‐20 through MR‐23. ED uses this
information for accounting and other reporting purposes.
Reporting on GAFR:
AMOUNT
DUE
TO/(FROM)
GUARANTOR
ITEM
NO.
CATEGORY
MR‐3
Status Changes
MR‐3‐
A
Death/Disability
MR‐3‐
B
Closed
School/False
Certification
MR‐3‐
C
Bankruptcy
Effect on
OTHER
Federal
AMOUNTS
Receivable *
PRINCIPAL INTEREST
AMOUNT
AMOUNT
345.00
200.00
50.00
18.00
2.00
50.00
25.00
Note: This column is for reference purposes only and is not an actual column on Forms 2000.
MR-3 Status Changes - Amount Due To/ (From) Guarantor
MR‐3, Status Changes, Amount Due To/(From) Guarantor, is the total amount of the unpaid
principal and interest portion of the default claim that the guaranty agency paid to the lender that
was not reimbursed by ED and is still outstanding at the time this supplemental request is
submitted to ED. This total amount is the sum of amounts reported in MR‐3‐A, Unpaid Principal and
Unpaid Interest through MR‐3‐C. This is a system‐calculated field that does not allow guaranty
agency input.
Example:
Borrower #1 D/D
Borrower #2 CS/FS
Borrower #3 Bankruptcy
Borrower
Original Claims
Original Claims
Status Changes Paid to Lender
Paid to Lender
Default To
Principal Amount Interest Amount
ED Payment
ED Payment to Additional
Additional
to GA
Amount due
GA Interest
Amount due
Principal
GA ‐ Principal GA ‐ Interest
Amt.
Amt.
$4,000 @ 95%
$1,000 @ 95%
$3,800.00
$950.00
$200.00
$50.00
$900 @ 98%
$100 @ 98%
$882.00
$98.00
$18.00
$2.00
$1,000 @ 95%
$500 @ 95%
$950.00
$475.00
$50.00
$25.00
5,900.00
1,600.00
$5,632.00
$1,523.00
$268.00
$77.00
Revised: September 2017
Page 29
Guaranty Agency Financial Report (GAFR) Guide
Reporting on GAFR:
ITEM
NO.
CATEGORY
MR‐3
Status Changes
MR‐3‐A
Death/Disability
MR‐3‐B
Closed School/False
Certification
MR‐3‐C Bankruptcy
AMOUNT DUE
TO/(FROM)
GUARANTOR
PRINCIPAL
AMOUNT
$345.00
INTEREST
AMOUNT
OTHER
AMOUNTS
$200.00
$50.00
$18.00
$2.00
$50.00
$25.00
MR-3-A Death/Disability - Principal and Interest
In the appropriate column (principal amount or interest amount) enter the amount for
default claims for which supplemental reinsurance is being requested due to a change in status of
the default claim to a death or disability claim. Enter the unpaid principal and interest portions of
death and disability claims that the guaranty agency paid to the lender that were not reimbursed by
ED and are still outstanding at the time this supplemental reinsurance request is submitted.
Also, report the account balance at conversion (from default to death and disability) in MR‐
20, Default/Lender of Last Resort to Death and Disability.
MR-3-B Closed School/False Certification - Principal and Interest
In the appropriate column (principal amount or interest amount) enter the amount of
default claims for which supplemental reinsurance is being requested due to a change in status of
the default claim to a closed school or false certification claim (include supplemental requests for
claims where the borrower is a victim of identity theft). Enter the unpaid principal and interest
portions of closed school or false certification claims that the guaranty agency paid to the lender
that were not reimbursed by ED and are still outstanding at the time this supplemental reinsurance
request is submitted.
Also, report the account balance at conversion (from default to closed school/false
certification) in MR‐21, Default/Lender of Last Resort to Closed School/False Certification.
MR-3-C Bankruptcy - Principal and Interest
In the appropriate column (principal amount or interest amount) enter the amount for
default claims for which supplemental reinsurance is being requested due to change in status of the
default claim to a bankruptcy claim. Enter the unpaid principal and interest portions of bankruptcy
claims that the guaranty agency paid to the lender that were not reimbursed by ED and are still
outstanding at the time this supplemental reinsurance request is submitted.
Revised: September 2017
Page 30
Guaranty Agency Financial Report (GAFR) Guide
If a borrower files for bankruptcy after a default claim was paid to the lender, and the
reinsurance claim was paid at less than 100 percent of principal and interest, the guaranty agency
may claim reimbursement for the complement of the reinsurance in this category.
Also, report the account balance at conversion (from default to bankruptcy) in MR‐22,
Default/Lender of Last Resort to Bankruptcy.
During the course of the bankruptcy proceedings, the agency must return and report to ED
any amounts received at the direction of the Bankruptcy Court on line MR‐14, Bankruptcy
Collections. Do not net them from the amount reported here. Once bankruptcy proceedings are
concluded and:
a repayment plan is established, the agency must report and return to ED any amounts
received at the direction of the Bankruptcy Court on line MR‐14, Bankruptcy Collections
the loan is not discharged, it must either be repurchased by a lender or collected on by the
guaranty agency in accordance with program regulations, and the agency must refund to ED
any additional bankruptcy reinsurance payment it received and report it on either MR‐7,
Partial Refund – CFY or MR‐8, Partial Refund – PFY, as appropriate.
Also, report the account balance at conversion (from bankruptcy to default) in MR‐23 Bankruptcy
to Default/Lender of Last Resort.
MR-4 TOP Overpayments
The Treasury Offset Program (TOP) category reports activity on accounts after offsets have
occurred. Overpayment refunds are made to borrowers by the guaranty agency when the offset
exceeds the balance (principal and interest) due on the borrower’s account.
MR-4 TOP Overpayments - Amount Due To/ (From) Guarantor
MR‐4, TOP Overpayments ‐ Amount Due To/ (From) Guarantor is that portion of the offset
that is in excess of the balance due on the defaulted borrower’s account that was refunded to the
borrower. This amount is the sum of amounts reported in MR‐4, Principal Amount, and Interest.
Amount and fees (reported in the Other Amounts column) and will be automatically
calculated. This is a system‐calculated field that does not allow guaranty agency input.
MR-4 TOP Overpayments – Principal
Enter amount refunded for this TOP offset activity that was applied to the portion of each
borrower’s account that represents principal and purchased interest. If the amount of the TOP
offset results in the borrower overpaying the amount due on the borrower’s account, and then
report that portion of the overpayment, which cannot be correctly charged to any category in this
item.
Revised: September 2017
Page 31
Guaranty Agency Financial Report (GAFR) Guide
Do not include amounts for other costs such as collection costs, late charges and attorney’s
fees because they cannot be collected through the TOP offset process.
MR-4 TOP Overpayments – Interest Amount
Enter amount refunded for this TOP offset activity that is applied to the portion of each
borrower’s account that represents accrued interest.
MR-4 TOP Overpayments – Other Amounts
Enter amount refunded for this TOP offset activity that is applied to the portion of each
borrower’s account that represents the TOP processing fee.
MR-5 Repurchases - Current Fiscal Year (CFY)
This category is used to refund to ED (“repurchases”) the amount paid a guaranty agency on
a reinsurance claim once it is determined that the claim was invalid..
Examples:
A borrower moves to study in a foreign country, but the borrower’s request for an in‐school
deferment is misplaced. The lender cannot contact the borrower and believes the loan should be in
repayment. The lender files a default claim. The guaranty agency pays the claim and receives
reinsurance from ED. The agency finally locates the borrower and determines the borrower should
not have been placed in default. The guaranty agency arranges for the lender to repurchase the
loan. The agency then provides a full refund of the default reinsurance claim to ED.
The guaranty agency files a reinsurance claim for bankruptcy with ED and is paid. The
guaranty agency then receives a notice from the Bankruptcy Court informing the agency that
bankruptcy proceedings have been concluded and that the loan was not discharged. The guaranty
agency must arrange for the lender to repurchase the loan and provide a full refund of the
bankruptcy reinsurance claim to ED. The lender must place the borrower back in repayment
although the borrower could subsequently default on the loan.
A guaranty agency must file a refund if it determines that it made an invalid reinsurance
claim. An agency must also file a refund on any bankruptcy claim where the bankruptcy
proceedings were concluded and the Bankruptcy Court does not discharge the loan. For example a
refund would be required if the borrower does not comply with the requirements of the Wage
Earner Plan and the Bankruptcy Court dismisses the case.
A guaranty agency must file a full refund of reinsurance to ED within 45 days of:
Receiving a notice from the Bankruptcy Court informing the agency that bankruptcy
proceedings have been concluded and that a loan on which ED paid a bankruptcy
reinsurance claim was not discharged or
Revised: September 2017
Page 32
Guaranty Agency Financial Report (GAFR) Guide
In all other cases, unless otherwise directed, the date that the agency discovers that a full
refund of reinsurance is due to ED.
Full refunds of default claims are refunds to ED for the full amount of the default
reinsurance. Refunds are reduced by borrower payments forwarded to ED. If a default reinsurance
claim was paid to the guaranty agency at a reduced reinsurance rate, the refund to ED must be
made at that rate (Amount remitted = outstanding principal * reinsurance reimbursement rate).
The effect of a full refund of a default claim on a guaranty agency’s “trigger figure”:
ED reduces the total of default claims paid which are subject to the reinsurance trigger by
the amount of the refund. This rule applies if the refund is for a reinsurance default claim
paid during the current federal fiscal year. Once the guaranty agency has exceeded its
trigger for the current federal fiscal year, subsequent full refunds do not affect the trigger
calculation. Instead, the refund amount is credited against default claims paid to the
guaranty agency in the following federal fiscal year.
Full refunds of a reinsurance default claim paid during a previous federal fiscal year do not
affect any trigger calculations.
If a full refund of a default claim is made more than 30 days after the guaranty agency
received the reinsurance payment, the agency must pay ED interest on the repurchased
loan. The interest rate is the rate specified on the borrower’s promissory note. Report the
unpaid interest from the date of the reinsurance payment until the date the refund is
reported to ED.
A repurchase agreement covers default claims. It does not apply to exempted, bankruptcy,
death and disability, closed school, false certification, or lender‐of‐last‐ resort loan claims
because these claims do not affect a guaranty agency’s trigger figure.
Repurchases have two sections. The columns are the same for each section. Each section has
five line items and the items are the same for each section. The purpose of the two sections is to
enable ED to properly process current and prior fiscal year refunds of guaranty agencies, which
have repurchase agreements with ED, and for ED’s accounting procedures. Repurchase agreements
provide for different treatment of reinsurance claims paid in a current fiscal year and in prior fiscal
years.
For the items in this section enter the information requested in each column, for the claims
included in the reporting period, using the following definitions.
MR-5 Repurchases - CFY - Amount Due To/ (From) Guarantor
MR‐5, Repurchases ‐ CFY ‐ Amount Due To/ (From) Guarantor, is the total dollar amount of
current fiscal year repurchased claims for the reporting period for which the guaranty agency is
making a full refund of reinsurance. This amount is the sum of MR‐5‐A through MR‐5‐E, Principal
Amount, Interest Amount, and Other Amounts, as applicable. This is a system‐ calculated field that
does not allow guaranty agency input.
Revised: September 2017
Page 33
Guaranty Agency Financial Report (GAFR) Guide
MR-5 Repurchases - CFY - Principal Amount
Enter the outstanding principal amount net of any complement for each type of claim for:
principal,
lender interest,
guaranty agency claim interest,
collection cost for closed school or false certification claims,
allowable outstanding collection costs on rehabilitated loans that subsequently default,
for closed school or false certification claims the amount of collections the agency returned
to the borrower at the time the claim was paid to the lender, and
accrued interest on a bankruptcy claim if the guaranty agency was required to hold the loan
until it was discharged in bankruptcy
The Secretary pays accrued interest on a bankruptcy claim if the guaranty agency was
required to hold the loan until it was discharged in bankruptcy. A bankruptcy claim paid to a lender
prior to July 23, 1992 may meet this condition. A Chapter 7 or 11 bankruptcy claim paid to the
lender when the borrower filed for discharge on the grounds of undue hardship, and the loan is
subsequently discharged, also meets this condition. For such a bankruptcy claim, the guaranty
agency is entitled to receive interest that accrued (but was held in forbearance) on the discharged
loan from the date the guaranty agency paid the lender through the earlier of:
60 days after the date the loan was discharged or
the date the agency’s reinsurance claim is authorized to be paid by ED
The lender must repurchase claims paid to lenders prior to July 23, 1992, on which the
borrower has not filed for a hardship discharge, and reinsurance must be returned to ED. In the
case where the agency submits its claim less than 60 days after the loan was discharged, the agency
will be unable to calculate the total amount of accrued interest due because it does not know the
date that ED will authorize the reinsurance claim to be paid. Therefore, the agency may calculate
the amount of interest that accrued through the date the agency files the reinsurance claim and
report it in this column. After the agency receives payment from ED for the claim, the agency may
calculate the additional interest that has accrued from the date the agency submitted the claim
through the earlier of the date that ED authorized payment of the claim or the 60th day after the
loan was discharged. Unless ED notifies the agency, the date ED authorizes payment of a claim is the
date the agency receives the payment.
If the guaranty agency is holding a bankruptcy claim paid to a lender and the Bankruptcy
Court proceedings have been concluded without the loan being discharged, then the guaranty
agency may not file a claim on the loan as a bankruptcy. Instead, the loan goes back into repayment,
with any interest that accrued during the bankruptcy proceedings being capitalized. The loan must
either be repurchased by a lender or collected by the guaranty agency in accordance with program
regulations.
If the loan later goes into default, the guaranty agency may file a default reinsurance claim
with ED at that time.
For a loan on which a bankruptcy claim is paid to a lender on or after July 23, 1992, and the
guaranty agency was not required to hold the claim, the guaranty agency can file for
Revised: September 2017
Page 34
Guaranty Agency Financial Report (GAFR) Guide
reimbursement at once. As with a reimbursement of a death or disability claim, the guaranty agency
is not entitled to any interest, which accrues on such a bankruptcy claim between the time the
guaranty agency paid the lender and the time ED pays the agency.
This amount does not include amounts paid to lenders for other items such as late charges,
collection cost, and attorney’s fees. It also excludes non‐reinsurance GA interest. If the non‐
reinsured GA Interest amount has been capitalized the agency must reduce this amount and report
it in the Other Amounts column. For closed school or false certification claims, outstanding
principal includes any collection costs paid by ED.
MR-5 Repurchases - CFY - Accrued Interest Due ED
Enter the amount of outstanding accrued interest due ED on default claims calculated at the
rate specified on each defaulted borrower’s promissory note. This applies only if:
it is a default claim;
the guaranty agency has a repurchase agreement with ED; and
the refund is made over 30 days after the reinsurance payment.
The unpaid interest due ED is calculated from the date the original reinsurance
reimbursement payment was received until the date the refund is reported to ED. Interest need not
be paid on a default claim which is refunded within 30 days of the date reinsurance was paid. If no
interest is due on any of the default claims being refunded, enter a zero. If the agency does not have
a repurchase agreement with ED enter zero.
The total refund due ED for this line item is the outstanding principal (net of any
complement) plus outstanding accrued interest due E.D
MR-5 Repurchases - CFY – Other Amounts
Enter the amount of outstanding non‐reinsured GA interest which is the outstanding
amount as calculated by the guaranty agency on the loan principal while a lender’s insurance claim
is being processed by the guaranty agency, but which was not eligible for reinsurance from ED.
Though this interest must be paid to the lender by the guaranty agency as part of an
insurance claim, it is not subject to reinsurance by ED. However, the Secretary of Education is
entitled to an equitable share of any of this interest collected from a borrower.
If non‐reinsured GA interest is capitalized in the outstanding principal net of any
complement, the agency must reduce the outstanding principal by the original amount of non‐
reinsured GA interest. Reduce the amount reported in the Principal Amount and report the original
amount of non‐reinsured GA interest in the Other Amounts column.
MR-5-A Repurchases - CFY – Defaults
Enter the amount related to default claims being refunded in full for which reinsurance was
paid during the current fiscal year for this reporting period. A default claim is one on which the
Revised: September 2017
Page 35
Guaranty Agency Financial Report (GAFR) Guide
borrower and endorser, if any, or joint borrowers on a PLUS or Consolidation loan, failed to make
an installment payment when due, or failed to meet other terms of the promissory note, if the
Secretary or guaranty agency finds it reasonable to conclude that the borrower or endorser, if any,
no longer intends to honor the obligation to repay, provided that failure persists:
For loans delinquent on/after 10/7/98:
o 270 days for a loan payable in monthly installments or
o 330 days for a loan payable in less frequent installments.
For loans delinquent before 10/7/98:
o 180 days for a loan payable in monthly installments and
o 240 days for a loan payable in less frequent installments;
MR-5-B Repurchases - CFY - Exempt /Lender-Of-Last-Resort
Enter the amount related to exempt and lender‐of‐last‐resort claims being refunded for
which reinsurance was paid during the current fiscal year for this reporting period. An exempt
claim is one on which the borrower defaulted after the lender determined that the borrower or
student failed to establish eligibility for the loan. Also include claims where the student has been
convicted of, or plead nolo contendere to, a crime involving fraud in obtaining title IV student aid or
in cases where the borrower is a victim of identity theft. Exempt claims on loans first disbursed
before July 1, 2006 were subject to reduced reimbursement and the reinsurance complement
should be reduced from amounts reported here. Lender‐of‐last‐resort loans are loans made only to
students who are otherwise unable to obtain loans. A lender‐of‐last‐resort loan (default) claim is
one on which the borrower and endorser, if any, failed to make an installment payment when due,
or to meet other terms of the promissory note.
This is only a general description of exempted and lender‐of‐last‐resort claims. Refer to
appropriate regulations and policy bulletins for specifics.
MR-5-C Repurchases - CFY – Death/Disability
Enter the amount related to death and total disability claims being refunded in full for
which a claim was paid during the current fiscal year for this reporting period. A death claim is one
on which the balance of the loan is canceled due to the borrower’s death. This includes a Federal
PLUS loan death claim paid to a lender when a student, on whose behalf a parent received the
Federal PLUS loan, dies. A disability claim is one on which the balance of the loan is conditionally
discharged due to the total and permanent disability of the borrower.
MR-5-D Repurchases - CFY - Closed School/False Certification
Enter the amount related to closed school or false certification claims being refunded in full
for which reinsurance was paid during the current fiscal year for this reporting period. A closed
school claim is one on which a claim is paid to a lender because the student was unable to complete
the program in which the student was enrolled due to the closure of the institution. A false
certification claim is one on which a claim is paid to a lender because the student’s eligibility to
borrow under the FFEL Program was falsely certified by an eligible institution of higher education.
Revised: September 2017
Page 36
Guaranty Agency Financial Report (GAFR) Guide
MR-5-E Repurchases - CFY - Bankruptcy (Chapter 7, 11, 12 and 13)
Enter the amount related to Chapter 7, 11, 12 and 13 bankruptcy claims being refunded in
full for which reinsurance was paid during the current fiscal year for this reporting period.
Chapter 7 and 11 bankruptcy claims are paid to a lender if:
The borrower has been in repayment status for over 7 years from the date on which the
bankruptcy petition is filed for cases commencing before October 8, 1998, or
The borrower begins an action to receive a discharge on the grounds of undue hardship.
Chapter 12 or 13 bankruptcy claims are claims paid to lender when a borrower files for
relief under those chapters of the U.S. Bankruptcy Code. During the course of the bankruptcy
proceedings, the agency must report and return to ED, any amounts paid at the direction of the
Bankruptcy Court. These amounts are not refunds.
If the bankruptcy proceedings are concluded and the loan is discharged, then the agency
must report and return to ED, any amounts paid at the direction of the Bankruptcy Court. These
amounts are not refunds.
If the bankruptcy proceedings are concluded and the loan is not discharged, then the agency
must refund in full the outstanding amount of the reinsurance bankruptcy payment it received from
ED. The guaranty agency also must arrange for a lender to repurchase the loan. The loan reverts to
an “in repayment” status at the lender. If the borrower does not repay the loan after repurchase,
then the loan could go into default. The guaranty agency could pay a default claim on it and file a
default reinsurance claim. This assumes all applicable lender and agency policies concerning
defaulted loans were followed.
If the borrower defaulted prior to filing bankruptcy and:
the reinsurance claim was paid at only 98, 95, 90, 88, 85, 80, 78 or 75 percent of principal
and interest and the complement of the reinsurance was paid under MR‐3 C, Status
Changes, when the borrower filed bankruptcy, and
the bankruptcy proceedings are concluded and the loan is not discharged, or
the borrower filed for bankruptcy after a default or lender‐of‐last‐resort loan (default)
claim was paid to the lender,
Then the agency must refund to ED any additional bankruptcy reinsurance payment it
received in MR‐5 and MR‐6. The guaranty agency would continue to hold the loan and attempt to
collect on it like any other default claim.
The agency must report and return to ED any amounts paid at the direction of Bankruptcy
Court. These amounts should be reported in MR‐14, Bankruptcy Collections because they are not
refunds.
Revised: September 2017
Page 37
Guaranty Agency Financial Report (GAFR) Guide
MR-6 Repurchases for Reinsurance Claims Paid in Prior Fiscal
Year
In MR‐6‐A through MR‐6‐E enter the information for repurchases of reinsurance claims
paid in all previous fiscal years in this section. This includes any refund of reinsurance where the
claim was not paid in the current fiscal year. Use the instructions for the line items with this same
title from the Repurchases ‐ Current Fiscal Year category, taking into account that this category
covers only reinsurance paid in previous fiscal years.
MR-6 Repurchases - PFY - Amount Due To/ (From) Guarantor
MR‐6, Repurchases ‐ PFY ‐ Amount Due To/(From) Guarantor is the total dollar amount of
prior fiscal year repurchased claims for the reporting period for which the guaranty agency is
making a full refund of reinsurance. This amount is the sum of MR‐6‐A through MR‐6‐E, Principal
Amount, Interest Amount and Other Amounts, as applicable. This is a system‐calculated field that
does not allow guaranty agency input.
MR-7 Partial Refunds - Current Fiscal Year (CFY)
This category is used to refund part of a reinsurance claim paid by ED when a lender
refunded part of the insurance claim paid by the guaranty agency. Borrower payments received by
the lender and forwarded to the guaranty agency are not subject to collection retention and should
be reported here. Borrower payments received by the guaranty agency after the default claim has
been paid to the holder are treated as a collection and should not be reported in this line item.
If the agency receives a claim overpayment from a lender after an insurance claim was paid,
but prior to reinsurance being requested, treat the payment as a refund and reduce the reinsurance
claim amount (MR‐1) by the amount refunded.
The guaranty agency must reimburse ED for the entire amount of lenders partial refund and
report this payment as an overpayment refund on all except a default claim. On a default claim, the
guaranty agency can reduce the refund by any complement if reinsurance was originally paid at a
reduced rate.
The effect of a partial refund of a default claim on a guaranty agency’s “trigger figure”
depends upon whether the agency has a repurchase agreement with ED:
If a guaranty agency has a repurchase agreement ED will reduce the total of default claims
paid which are subject to the reinsurance trigger by the amount of the partial refund. This
rule applies if the refund is for a reinsurance default claim paid during the current fiscal
year. Once the guaranty agency has exceeded its trigger for the current fiscal year,
subsequent partial refunds do not affect the trigger calculation. Instead, the partial refund
amount is credited against default claims paid to the guaranty agency in the following
federal fiscal year. A partial refund of a reinsurance default claim paid during a previous
Revised: September 2017
Page 38
Guaranty Agency Financial Report (GAFR) Guide
Federal fiscal year does not affect any trigger calculations. A repurchase agreement only
covers default claims.
If a guaranty agency does not have a repurchase agreement, a partial refund affects the
agency’s reinsurance trigger calculation up to the time the agency exceeds the trigger. The
trigger is affected only for partial refunds when the reinsurance claim was paid during the
current fiscal year.
Example:
Principal
Amount of Default Claim Paid to
$1,000.00
Lender
GA Reimbursement Rate
95%
Borrower Payment Received
$100.00
GAFR Reporting:
Interest
$50.00
$25.00
Other
$25.00
If borrower payment is
received by the lender and
forwarded to the guaranty
agency before the guaranty
agency files for reinsurance.
MR‐1
If borrower payment is
MR‐7 or
received by the lender and
MR‐8
forwarded to the guaranty
after lender claim payment.
If borrower payment
MR‐12 or
is received directly
MR‐13
by the guaranty
agency after the
default insurance
claim has been paid
to the lender.
($1,000 –100) *
95%
=$855.00
($100 * 95%) =
($25 * 95%)
less ($25
* 16%)
= $18.00
($25 * 95%)
less ($25 *
16%)
= $18.00
$95.00
($50 *95%) less
($50*16%)
=$39.50
MR-7 Partial Refunds - CFY - Amount Due To/ (From) Guarantor
This amount is the total for partial refund amounts that the guaranty agency is refunding for
all claim types, less any complement, if the reinsurance was originally paid at a reduced
reimbursement rate.
It does not include amounts paid to lenders or the guaranty agency for other items such as
late charges, collection costs, and attorney’s fees. It also excludes non‐reinsured GA interest. MR‐7,
Partial Refunds ‐ CFY, Amount Due To/ (From) Guarantor, is the sum of amounts reported in MR‐7‐
Revised: September 2017
Page 39
Guaranty Agency Financial Report (GAFR) Guide
A through MR‐7‐E, Principal Amount. This is a system‐calculated field that does not allow guaranty
agency input.
MR‐7‐A Partial Refunds ‐ CFY ‐ Defaults
Enter the amount of partial refunds of reinsurance related to default claims for this
reporting period, as defined above.
Example: The guaranty agency receives a refund from a lender of $100 for a default claim.
Reinsurance was paid at 95 percent. The guaranty agency would refund only $95, that is, 95% of
$100 to ED.
MR-7-B Partial Refunds - CFY – Exempt/Lender-of-Last-Resort
Enter the amount of partial refunds of reinsurance for exempt and lender‐of‐last‐resort
claims for this reporting period, as defined above.
Reinsurance paid on exempt claims for loans first disbursed on or after July 1, 2006, and lender‐ of‐
last‐resort claims are not subject to a reduced reinsurance rate. Therefore, the guaranty agency
must return to ED the entire amount of any partial refund from a lender for such a claim.
MR-7-C Partial Refunds – CFY – Death and Disability
Enter the amount of partial refunds for death and disability claims for this reporting period,
as defined above. Payments on death or disability claims are not subject to a reduced reinsurance
rate. Therefore, the guaranty agency must return to ED the entire amount of the partial refund from
a lender or the guaranty agency.
MR-7-D Partial Refunds - CFY - Closed School or False Certification
Enter the amount of partial refunds for closed school or false certification claims for this
reporting period, as defined above.
Payments on closed school or false certification claims are not subject to a reduced
reinsurance reimbursement rate. Therefore, the guaranty agency must return to ED the entire
amount of any partial refund from a lender or the guaranty agency for such a claim.
MR-7-E Partial Refunds - CFY – Bankruptcy
Enter the amount of partial refunds for Chapter 7, 11, 12 and 13 bankruptcy claims for this
reporting period, as defined above.
Payments on a Chapter 7, 11, 12 and 13 bankruptcy claims are not subject to a reduced
reinsurance rate. Therefore, the guaranty agency must return to ED the entire amount of the partial
refund from a lender or the guaranty agency.
Revised: September 2017
Page 40
Guaranty Agency Financial Report (GAFR) Guide
MR-8 Partial Refund - Previous Fiscal Year (PFY)
In MR‐8‐A through MR‐8‐E enter the information for partial refunds paid in all previous
fiscal years in this section. Use the instructions for the line items with this same title from the
Partial Refunds ‐ CFY Section (MR‐7‐A through MR‐7‐E), taking into account that this Section covers
partial refunds paid in previous fiscal years.
MR-8 Partial Refunds - PFY, Amount Due To/ (From) Guarantor
MR‐8, Partial Refunds ‐ PFY, Amount Due To/ (From) Guarantor, is the sum of amounts
reported in MR‐8‐A through MR‐8‐E, Principal Amount. This is a system‐calculated field.
MR- 9 Overstated Claims
This category is used to correct and refund reinsurance if the guaranty agency’s arithmetic
or typographical errors on previously submitted reinsurance requests and additional reinsurance
requests resulted in the agency, but not the lender, being overpaid. Also use this category to refund
to ED partial amounts paid the agency on supplemental reinsurance requests due to a further
change in claim status back to default if originally paid at less than 100%.
Further changes in status may also require reporting in the Non‐Payment Activity Section,
MR‐ 20 through MR‐23, Status Changes ‐ Account Balance after conversion.
The guaranty agency must refund to ED the entire amount of the overstated reinsurance
claim on all except a default claim. On a default claim, the guaranty agency can reduce the refund by
any complement if reinsurance was originally paid at a reduced rate.
MR-9 Overstated Claims - Amount Due To/ (From) Guarantor
This amount is the total for overstated claims and refund of partial amounts paid to the
guaranty agency on supplemental reinsurance requests due to a further change in claim status.
MR‐9, Overstated Claims ‐ Amount Due To/ (From) Guarantor, is the sum of amounts
reported in MR‐9‐A through MR‐9‐E. This is a system‐calculated field that does not allow guaranty
agency input.
MR-9-A Overstated Claims – Defaults
Enter the amount of refunds due to overpayment of reinsurance for default claims for this
reporting period. This amount is reduced by the complement of reinsurance if the guaranty agency
was originally paid at a reduced rate.
MR-9-B Overstated Claims - Exempt/Lender of Last Resort
Revised: September 2017
Page 41
Guaranty Agency Financial Report (GAFR) Guide
Enter the amount of refunds due to overpayment of reinsurance for exempt and lender of
last resort (default) claims for this reporting period.
MR-9-C Overstated Claims - Death/Disability
Enter the amount of refunds due to overpayment of reinsurance for death and disability
claims for this reporting period.
MR-9-D Overstated Claims - Closed School/False Certification
Enter the amount of refunds due to overpayment of reinsurance for closed school and false
certification claims for this reporting period.
MR-9-E Overstated Claims – Bankruptcy
Enter the amount of refunds due to overpayment of reinsurance for bankruptcy claims for
this reporting period. Also, include amounts due ED as a result of filing a change in status
supplemental reinsurance request. The account balance after conversion of these status changes
should also be reported in the Non‐Payment Activity section, Status Changes ‐ Account Balance
after conversion, MR‐23, Bankruptcy to Default/Lender of Last Resort.
MR-10 Rehabilitated Loans
A rehabilitated loan is one on which a default, exempt or lender‐of‐last‐resort loan
reinsurance claim has been paid. If the borrower then makes, 9 payments made within 20 days of
the due date during 10 consecutive months, the guaranty agency may sell the loan to an eligible
lender. This category is used to report rehabilitated loan payments due to ED as the result of the
sale of certain defaulted loans to eligible lenders. (Note: Beginning July 1, 2014, a guaranty agency
may assign the loan to ED if the agency has been unable to sell the loan to an eligible lender. That
activity is reported in MR31).
If the loan defaults again, the lender can file a claim with the guaranty agency and the
agency can file a reinsurance claim with ED. The reasonable collection costs assessed the borrower
are capitalized at the time of the loan sale and will be reported as principal if the loan defaults
again. “Reasonable” collection costs, in connection with rehabilitation loans, is an amount that does
not exceed 16 percent of the outstanding amount of principal and accrued interest on the loan at
the time the agency arranges for the lender to purchase the loan or certifies the payoff amount to
the purchasing lender. In the case of a sale made on or after July 1, 2014, the collection charge to the
borrower may not exceed 16 percent of the outstanding principal and interest at the time of the
loan sale. Collection costs that accrue after rehabilitation cannot be claimed on a subsequent
default. Rehabilitated loan sales to lenders must be reported to ED within 45 days of their
occurrence.
Revised: September 2017
Page 42
Guaranty Agency Financial Report (GAFR) Guide
Beginning July 1, 2014, the guaranty agency must pay ED an amount equal to 100 percent of
the outstanding principal balance on the loan at the time of the sale to the lender, multiplied by the
reinsurance percentage in effect when payment under the guaranty agreement was made. For
rehabilitated loan reporting, the outstanding principal balance is defined as the principal amount of
the loan, which includes purchased interest, received by the lender from the guaranty agency for
the default claim. Borrower payments applied may reduce the outstanding principal balance. The
outstanding principal balance does not include any outstanding interest that accrued since the
payment of the claim, or outstanding other charges, such as collection costs, late charges, or
attorney’s fees.
If reinsurance was paid on the loan by multiple reinsurance requests and reinsurance was
paid at different rates, the agency must prorate its rehabilitated loan payment or pay ED at the
highest reinsurance rate used.
The repayment to ED on the sale of a rehabilitated loan affects a guaranty agency’s “trigger
figure” in all cases except rehabilitated lender‐of‐last‐resort loan (defaults). Lender‐of‐last‐resort
loans (defaults) are exempt from the “trigger figure” calculation.
Rehabilitated loans reduce the total amount of default claims paid which are subject to the
reinsurance trigger by the amount of the repayment. Once the guaranty agency has exceeded its
trigger for the current federal fiscal year, subsequent repayments do not affect the trigger
calculation. Instead, the repayment amount is credited against default claims to the guaranty
agency in the following federal fiscal year. This rule applies whether or not the agency has a
repurchase agreement with ED.
Also, include in this item any rehabilitated loans for a loan guarantee transferred from an
insolvent agency under a plan approved by the Secretary.
MR-10 Rehabilitated Loan Refund - Amount Due To/ (From) Guarantor
This is the total amount due to ED for the sale of rehabilitated loans to lenders. This amount
should equal 81.5 percent of the outstanding principal balance on the loan at the time the agency
arranges with the lender to rehabilitate the loan or certifies the payoff amount to the purchasing
lender multiplied by the reinsurance percentage in effect for the reinsurance claims paid on the
loans. Beginning July 1, 2014, this amount should equal to 100 percent of the outstanding principal
balance on the loan at the time of the sale to the lender, multiplied by the reinsurance percentage in
effect when payment under the guaranty agreement was made with respect to the loan. The
complement should be transferred to the agency’s federal fund.
MR‐10, Rehabilitated Loan Refund, Amount Due To/ (From) Guarantor, is the sum of the
amount reported in MR‐10, Principal Amount. This is a system‐calculated field that does not allow
guaranty agency input.
MR-10 Rehabilitated Loans - Principal Amount
Enter the federal share of outstanding principal balance. Effective July 1, 2014, multiply
the outstanding principal balance by the reimbursement rate.
Revised: September 2017
Page 43
Guaranty Agency Financial Report (GAFR) Guide
MR-10-A Rehabilitated Loans- Principal Amount (GA Retention)
Even though this line item is entitled Principal Amount it should reflect the GA retention on
the rehabilitated loan at the time of the sale. Enter the amount retained by the guaranty agency for
the sale of rehabilitated loans to lenders. Effective July 1, 2014, this amount will be 0%. Note:
In the scenario where the GA is attempting to report an adjustment that would result in a
negative amount in 10‐A, an explanation must be provided in the comment section.
The example below demonstrates GAFR reporting for rehabilitation loans sales.
Example: Rehabilitation Loan Calculation (Single Loan) for a loan sold to a lender on or after July 1,
2014
Reinsurance Reimbursement Rate – 98%
Outstanding Principal and Interest Balance at Time of Rehabilitation – $1,000.00
(Outstanding Principal Balance – $993.27; Accrued Interest – $6.73)
Payoff Amount (for lender to purchase rehabilitated loan) – $1,160.00 [Outstanding
Principal and Interest Balance of $1,000.00 plus Collection Cost of $160.00 ($1,000.00
*16%)]
Complement (formula provided for informational purposes only) – Total Payoff Amount
($1,160.00) less Secretary’s Share ($973.40), less Accrued Interest, less GA Retention
($160.00) equals $19.87.
Outstanding Principal Balance
Payoff Amount
Secretary’s Share
GA Retention
Complement
(for informational
purposes
Accrued
Interest
$993.27
$6.73
Other
Charges
Total
Payoff
Amount
$160.00 $1,160.00
$993.27 * 98% = $973.40
1000*16%
= $160.00
$1,160.00 – $973.40 – $6.73 –
$160.00 =
ITEM NO.
MR‐10
MR‐10‐A
CATEGORY
Rehabilitated Loan
Refund
Rehabilitated Loans
Revised: September 2017
AMOUNT DUE
TO/(FROM)
GUARANTOR
$973.40
PRINCIPAL
AMOUNT
INTEREST
AMOUNT
OTHER
AMOUNTS
$973.40
$6.73
$160.00
Page 44
Guaranty Agency Financial Report (GAFR) Guide
MR-10-A Rehabilitated Loans – Interest
Enter the outstanding accrued interest balance of each borrower’s account at the time the
rehabilitated loan was sold to a lender.
MR-10-A Rehabilitated Loans - Other Charges
Enter the outstanding other charges balance of each borrower’s account at the time the
rehabilitated loan was sold to a lender. Other charges include: late charges, collection costs, or
attorney’s fees. .
MR-11 FFEL Consolidation Refund
This category is used to report Federal default consolidation loan refunds due to ED as a
result of the sale of certain defaulted FFEL loans consolidated into a Federal Consolidation loan.
Due to the enactment of the Health Care and Education Reconciliation Act (HERA) of 2010,
reporting for this line item is no longer required after June 30, 2010.
MR-11 FFEL Consolidation Refund - Amount Due To/ (From) Guarantor
No activity should be reported on this line item.
MR-11 FFEL Consolidation Refund - Principal Amount
No activity should be reported on this line item.
MR-11 FFEL Consolidation Refund - Interest Amount
No activity should be reported on this line item.
MR-11 FFEL Consolidation Refund – Other Amount
No activity should be reported on this line item.
MR-11-A FFEL Consolidation Payoff – Principal Amount
No activity should be reported on this line item.
Revised: September 2017
Page 45
Guaranty Agency Financial Report (GAFR) Guide
MR-11-A FFEL Consolidation Payoff – Interest Amount
No activity should be reported on this line item.
MR-11-B FFEL Consolidation GA Retention – Principal Amount
No activity should be reported on this line item.
MR-11-B FFEL Consolidation GA Retention - Interest Amount
No activity should be reported on this line item.
MR-11-B FFEL Consolidation GA Retention - Other Amount
No activity should be reported on this line.
MR-12 GA Administrative Wage Garnishment
This category reports on administrative wage garnishment collection activities by the
guaranty agency on loans for which insurance claims have been paid to the lender and which have
not been assigned to ED by the agency. This includes collections of default, exempt and lender‐of‐
last‐resort loan (default) claims on which the guaranty agency is entitled to retain a percentage of
the amount collected to pay for its collection costs. A guaranty agency may not attempt to collect
the following types of claims:
bankruptcy (all Chapters)
death and disability
closed school
false certification
GA Administrative Wage Garnishment collections on exempt claims are to be reported in
this item. An exempt claim includes a loan on which the borrower defaulted after the lender
determined that the borrower failed to establish eligibility for the loan. Collections on exempt
claims are to be made in accordance with the instructions in Student Financial Assistance Programs
bulletin 89‐G‐159 dated May 1989.
All collections must be reported to ED within 45 days of the receipt of the collections by the
guaranty agency or its agent, whichever is earlier.
Amounts from collection checks returned for insufficient funds (bounced checks) are
deducted prior to reporting collections to ED.
Revised: September 2017
Page 46
Guaranty Agency Financial Report (GAFR) Guide
MR-12 Administrative Wage Garnishment - Amount Due To/ (From)
Guarantor
This amount represents collections received through administrative wage garnishment
collections by the guaranty agency on loans for which insurance claims have been paid to the lender
and which have not been assigned to ED by the guaranty agency.
Garnishment is the procedure requiring a borrower’s employer to withhold a portion of a
borrower’s pay to repay the amount the borrower owes on a default or a lender‐of‐last‐resort loan
(default). A guaranty agency’s garnishment procedures must comply with Section 488A of the HEA,
appropriate regulations and policy bulletins.
Collections on bankruptcies are under the jurisdiction of Federal Bankruptcy Courts and
take precedence over the administrative wage garnishment provisions of Section 488A.
Administrative wage garnishment cannot be instituted on a borrower who has filed for bankruptcy.
Administrative wage garnishment in effect at the time a borrower files for bankruptcy would have
to cease if the Bankruptcy Court orders a halt to any collection activity against a borrower. Report
collections ordered by the Bankruptcy Court in line item MR‐14, Bankruptcy Collections.
Report in this line item the total of the “Federal share of collections” associated with wage
garnishment collections. This refers to that portion of collections that remain after the following
has been deducted:
an amount equal to the complement of the reinsurance percentage which was in effect
when the reinsurance payment was made by the Secretary for default claims, and
an amount equal to 16 percent of collections for default, exempted and lender‐ of‐ last‐
resort loan (default) claims to help the guaranty agency pay for the cost of its collection
activities on collections received on or after October 1, 2007.
A guaranty agency must calculate the amounts that are due to ED.
Calculate amounts based on the reinsurance reimbursement rate that was in effect at the
time the guaranty agency was reimbursed. If a borrower account contains original claims and
additional reinsurance that was paid at different rates, the agency must report its collections at
either:
the rate at which each individual item was paid or
the highest rate at which any item was paid.
Example: An agency receives a collection on a single borrower’s account that includes two claims,
one of which received reinsurance reimbursement at the 98 percent rate, and the other at the 80
percent rate. The agency may prorate the collection and report appropriate amounts at 98%
reinsurance reimbursement and 80% reinsurance reimbursement. As an alternative to this, the
guaranty agency may report the entire collection as 98% Reinsurance Reimbursement, because this
was the highest rate at which one of the items in the account was reimbursed.
Revised: September 2017
Page 47
Guaranty Agency Financial Report (GAFR) Guide
MR‐12, GA Administrative Wage Garnishment, Amount Due To/ (From) Guarantor is the
sum of amounts reported in MR‐12, Principal Amount, Interest Amount and Other Amounts. This is
a system‐calculated field.
Example:
Wage Garnishment Collections (Reinsurance Reimbursement Rate = 95%)
GA Received the Collection on October 10, 2007 (Collection Retention Rate – 16%)
AMOUNT DUE
TO/(FROM)
PRINCIPAL INTEREST OTHER
GUARANTOR
AMOUNT AMOUNT
AMOUNTS
$
7,900.00 $5,530.00
$1,580.00
$ 790.00
ITEM NO.
MR‐12
CATEGORY
GA Administrative Wage Garnishment
MR‐12‐A Administrative Wage Garnishment ‐ Total Collected
$7,000.00
$2,000.00
$1,000.00
MR‐12‐B Administrative Wage Garnishment ‐ GA Retention
$1,120.00
$ 320.00
$ 160.00
Total
Collected
$10,000.00
Secretary’s
Share
GA Retention
Principal
Interest
Other Charges
7,000.00
2,000.00
($57000 * .95) ‐ ($7000 *. ($2000 *. 95) ‐ ($2000 *.16) =
16)
$1,580.00
$7000 *.16 = $1,120
1,000.00
($1000 * .95) ‐ ($1000 * .16)
= $790.00
$2000 * .16 = $320
$1000 *.16 = $160
MR-12 Administrative Wage Garnishment – Principal Amount
Enter the principal amount due ED on the collection. To calculate the principal amount:
(total collected and applied to principal) multiplied by (appropriate reinsurance rate) less (total
collected and applied to principal) multiplied by (appropriate retention rate) equals Federal share
of collections.
MR-12 Administrative Wage Garnishment – Interest Amount
Enter the accrued interest amount due ED on the collection. To calculate the accrued
interest amount: (total collected and applied to accrued interest) multiplied by (appropriate
reinsurance rate) less (total collected and applied to accrued interest) multiplied by (appropriate
retention rate) equals Federal share of collections.
MR-12 Administrative Wage Garnishment – Other Amount
Enter the other charges amount due ED on the collection. To calculate the other charges
amount: (total collected and applied to other charges) multiplied by (appropriate reinsurance rate)
less (total collected and applied to other charges) multiplied by (appropriate retention rate) equals
Federal share of collections.
MR-12-A Administrative Wage Garnishment –Total Collected – Principal
Revised: September 2017
Page 48
Guaranty Agency Financial Report (GAFR) Guide
Enter the total amount of collections that were applied to the portion of each borrower’s
account that represents principal and purchased interest.
MR-12-A Administrative Wage Garnishment –Total Collected – Interest
Enter the total amount of collections that were applied to the portion of each borrower’s
account that represents accrued interest.
MR-12-A Administrative Wage Garnishment –Total Collected – Other
Enter the total amount of collections that were applied to the portion of each borrower’s
account that represents other charges.
MR-12-B Administrative Wage Garnishment – GA Retention – Principal
Enter the total amount of collections that were applied to that portion of the borrower’s
account that represents principal that is retained by the guaranty agency. To calculate this amount:
multiply the total principal amount by the applicable retention rate.
MR-12-B Administrative Wage Garnishment – GA Retention – Interest
Enter the total amount of collections that were applied to that portion of the borrower’s
account that represents accrued interest that is retained by the guaranty agency. To calculate this
amount multiply the total accrued interest amount by the applicable retention rate.
MR-12-B Administrative Wage Garnishment – GA Retention – Other
Enter the total amount of collections that were applied to that portion of the borrower’s
account that represents other charges that is retained by the guaranty agency. To calculate this
amount multiply the total other charges amount by the applicable retention rate.
Revised: September 2017
Page 49
Guaranty Agency Financial Report (GAFR) Guide
MR-13 Default Collections
This category reports on default collections by the guaranty agency on loans for which
insurance claims have been paid to the lender and which have not been assigned to ED by the
agency. This includes collections of default, exempt and lender‐of‐last‐resort loan (default) claims
on which the guaranty agency is entitled to retain a percentage of the amount collected to pay for
its collection costs.
A guaranty agency may not attempt to collect the following types of claims:
bankruptcy (all Chapters);
death and disability;
closed school; or
false certification
Collections on exempt claims are to be reported in this item. An exempt claim includes a
loan on which the borrower defaulted after the lender determined that the borrower failed to
establish eligibility for the loan. Collections on exempted claims are to be made in accordance with
the instructions in Student Financial Assistance Programs bulletin 89‐G‐159 dated May 1989. All
collections must be reported to ED within 45 days of the receipt of the collection by the guaranty
agency or its agent, whichever is earlier.
Amounts from collection checks returned for insufficient funds (bounced checks) are
deducted prior to reporting collections to ED.
MR-13 Default Collections - Amount Due To/ (From) Guarantor
This item is used to report default collections received by the guaranty agency on loans for
which insurance claims have been paid to the lender and which have not been assigned to ED by the
guaranty agency. Report in this line item the total of the “Federal share of collections” associated
with collections. This refers to that portion of collections that remain after the following has been
deducted:
an amount equal to the complement of the reinsurance percentage which was in effect
when the reinsurance payment was made by the Secretary for default claims and;
an amount equal to 16 percent of collections for default, exempted and lender‐of‐last resort
loan (default) claims to help the guaranty agency pay for the cost of its collection activities
on collections received on or after October 1, 2007.
A guaranty agency must calculate the amounts that are due to ED.
Calculate the amounts based on the reinsurance reimbursement rate that was in effect at
the time the guaranty agency was reimbursed. If a borrower account contains original claims and
additional reinsurance that was paid at different rates, the agency must report its collections at
either:
the rate at which each individual item was paid or
the highest rate at which any item was paid.
Revised: September 2017
Page 50
Guaranty Agency Financial Report (GAFR) Guide
Example:
Default Collections (Reinsurance Reimbursement Rate = 95%)
GA Received the Collection on October 10, 2007 (Collection Retention Rate – 16%)
Total
Collected
Principal
$38,000.00
Secretary’s
Share
Interest
15,000.00
Other Charges
12,000.00
11,000.00
($15000 *. 95) ‐ ($15000 ($12000 *. 95) ‐ ($12000 * ($11000 * .95) ‐ ($11000
*
.16)
* .16) = $8,690
.16)= $11,850
= $9,480
$15000 * .16 = $2,400
$12000 * .16 = $1,920
$11000 * .16 = $1,760
GA Retention
ITEM NO.
MR‐13
CATEGORY
Default Collections
AMOUNT DUE
TO/(FROM) PRINCIPAL INTEREST
OTHER
GUARANTOR AMOUNT AMOUNT AMOUNTS
$30,020.00
$11,850.00
$ 9,480.00
$ 8,690.00
$15,000.00 $12,000.00
$11,000.00
MR‐13‐A Default Collections ‐ Total Collected
MR‐13‐B Default Collections ‐ GA Retention
$ 2,400.00
$ 1,920.00
$ 1,760.00
MR‐13, Default Collections, Amount Due To/ (From) Guarantor is the sum of amounts
reported in MR‐13, Principal Amount, Interest Amount and Other Amounts. This is a system‐
calculated field that does not allow guaranty agency input.
MR-13 Default Collections – Principal Amount
Enter the principal amount due ED on the collection. To calculate the principal amount:
(total collected and applied to principal) multiplied by (appropriate reinsurance rate) less (total
collected and applied to principal) multiplied by (appropriate retention rate) equals Federal share
of collections.
MR-13 Default Collections – Interest Amount
Enter the accrued interest amount due ED on the collection. To calculate the accrued
interest amount: (total collected and applied to accrued interest) multiplied by (appropriate
reinsurance rate) less (total collected and applied to accrued interest) multiplied by (appropriate
retention rate) equals Federal share of collections.
MR-13 Default Collections – Other Amount
Enter the other charges amount due ED on the collection. To calculate the other charges
amount: (total collected and applied to other charges) multiplied by (appropriate reinsurance rate)
Revised: September 2017
Page 51
Guaranty Agency Financial Report (GAFR) Guide
less (total collected and applied to other charges) multiplied by (appropriate retention rate) equals
Federal share of collections.
Other charges may include late charges, collection costs, and attorney’s fees
MR-13-A Default Collections –Total Collected – Principal
Enter the total amount of collections that were applied to the portion of each borrower’s
account that represents principal and purchased interest.
MR-13-A Default Collections –Total Collected – Interest
Enter the total amount of collections that were applied to the portion of each borrower’s
account that represents accrued interest.
MR-13-A Default Collections –Total Collected – Other
Enter the total amount of collections that were applied to the portion of each borrower’s
account that represents other charges.
MR-13-B Default Collections – GA Retention – Principal
Enter the total amount of collections that were applied to that portion of the borrower’s
account that represents principal that is retained by the guaranty agency. To calculate this amount:
multiply the total principal amount by the applicable retention rate.
MR-13-B Default Collections – GA Retention – Interest
Enter the total amount of collections that were applied to that portion of the borrower’s
account that represents accrued interest that is retained by the guaranty agency. To calculate this
amount multiply the total accrued interest amount by the applicable retention rate.
MR-13-B Default Collections – GA Retention – Other
Enter the total amount of collections that were applied to that portion of the borrower’s
account that represents other charges that is retained by the guaranty agency. To calculate this
amount multiply the total other charges amount by the applicable retention rate.
MR-14 Bankruptcy Collections
This category is used to report collections on bankruptcy claims. These collections must be
reported to ED. The Secretary of Education is entitled to 100 percent of collections applied to
Revised: September 2017
Page 52
Guaranty Agency Financial Report (GAFR) Guide
principal, interest and other charges on these claims. This line item includes collections on
bankruptcies where:
the loan was initially purchased from the lender as a bankruptcy claim or,
the borrower filed for bankruptcy after a default claim was paid to the lender, the
reinsurance claim was paid at only 98, 95, 90, 88, 85, 80, 78 or 75 percent of principal and
interest, and the complement of the reinsurance was requested by the guaranty agency, and
the guaranty agency reported the change in status to ED in MR‐3, Status Changes, or
the borrower filed for bankruptcy after a default claim was paid to the lender, the
reinsurance claim was paid at 100 percent of principal and interest.
Collections are received on bankruptcy claims at the direction of the Bankruptcy Court.
Collections may be received in increments while the loan is under the jurisdiction of the court.
This is typical of proceedings in a Chapter 13 bankruptcy (a Wage Earner Plan). Collections may
also be received as a lump sum in the distribution of assets at the conclusion of the bankruptcy
proceedings.
When a guaranty agency receives a collection payment from the Bankruptcy Court it must
report and return all of it to ED. Since a bankruptcy claim is always paid at the 100 percent
reimbursement rate, there is no deduction for a complement of the reinsurance on a claim’s
collections. Also, a guaranty agency may not retain any portion of bankruptcy collections to pay for
collection costs. The guaranty agency can receive amounts for:
Principal,
Purchased Interest (Lender Interest, Guaranty Agency Claim Interest And Non‐ Reinsured
GA Interest),
Accrued Interest, And
Any collection charges permitted by law, regulation, or the borrower’s promissory note.
MR-14 Bankruptcy Collections - Amount Due To/ (From) Guarantor
This amount represents the total amount of collections received by the guaranty agency and
its agents from the Bankruptcy Court for the reporting period for reinsurance claims paid as
bankruptcy claims.
Included are amounts collected: while the loan was under the jurisdiction of the Bankruptcy
Court, and
as a lump sum at the conclusion of the bankruptcy proceedings, even if the money was
collected after the date the proceedings concluded.
MR‐14, Bankruptcy Collections, Amount Due To/ (From) Guarantor is the sum of amounts
reported in MR‐14, Principal Amount, Interest Amount and Other Amounts. This is a system‐
calculated field that does not allow guaranty agency input.
MR-14 Bankruptcy Collections – Principal Amount
Revised: September 2017
Page 53
Guaranty Agency Financial Report (GAFR) Guide
Enter the total amount of bankruptcy collections that were applied to the portion of each
borrower’s account that represents principal and purchased interest.
MR-14 Bankruptcy Collections – Interest Amount
Enter the total amount of bankruptcy collections that were applied to the portion of each
borrower’s account that represents accrued interest.
MR-14 Bankruptcy Collections – Other Amount
Enter the total amount of bankruptcy collections that were applied to the portion of each
borrower’s account that represents other charges.
MR-15 Default FFEL Consolidated by DL Fee – Amount Due To/
(From) Guarantor
This line item is used to report the Secretary’s fee on defaulted Federal Family Education
Loans consolidated by the William D. Ford Direct Loan Program. Guaranty agencies are required to
remit to the Secretary a portion of the collection charge equal to 8.5 percent of the outstanding
principal and interest on the loan. This fee is effective for defaulted loans consolidated on or after
October 1, 2006. If no collection costs are charged, there is no fee due to the Secretary, however, if
any collection costs are charged the Secretary is due up to 8.5 percent of the outstanding principal
and interest on the loan.
On and after October 1, 2009, a guaranty agency must remit the entire amount of the
collection costs charged the borrower applicable to a defaulted loan that is paid off with
excess consolidation proceeds. The term “excess consolidation proceeds” is defined in the HEA, as,
with respect to any guaranty agency for any Federal fiscal year beginning on or after
October 1, 2009, the proceeds of consolidation loans received to pay defaulted Title IV loans for that
agency that exceed 45 percent of the agency's total collections on defaulted loans in such Federal
fiscal year. The excess consolidation proceeds should be reported on this line item.
MR-16 Total
The sum of this item equals the sum of amounts reported in MR‐1 through MR‐15, Amount
Due To/ (From) Guarantor. This is a system‐calculated field that does not allow guaranty agency
input. The total will be displayed as a positive number which represents the amount due to the
guarantor or a negative number which represents the amount due ED. Amounts due ED from
monthly processing could be offset by pending Account Maintenance Fee (AMF) payments.
NON-PAYMENT ACTIVITY (Accounting Data)
Revised: September 2017
Page 54
Guaranty Agency Financial Report (GAFR) Guide
This section reports on guaranty agency monthly activities, which do not involve the receipt
or the disbursement of funds between ED and a guaranty agency. This section includes reporting
on the Treasury Offset Program (TOP) and Status Changes for non‐payment activities. All amounts
reported in this section (MR‐17 through MR‐23) can be positive or negative and must reflect
activity that occurred within the reporting period.
Treasury Offset Program (TOP)
This category reports non‐payment activity on accounts after Treasury Offset Program
(TOP), (formerly called IRS offset), have occurred and non‐payment information which is used to
calculate the guaranty agency’s Federal receivable balance.
The guaranty agency initiates action to collect on defaulted loan accounts by way of TOP
offset. Collection of amounts owed on the defaulted loan is offset against the borrower’s Federal
income tax refunds. The U.S. Internal Revenue Service under the Treasury Offset Program (TOP)
makes offsets. Only principal and interest is offset. All other charges must be collected directly by
the guaranty agency or its agent. The guaranty agency and its agents can continue to receive
collections from the borrowers’ after the TOP procedures have been initiated. Collections received
by the guaranty agency are reported in MR‐ 13, Default Collections.
The agency begins the offset process in October of each year. The TOP begins offsetting income tax
refunds the following January. Attempts to offset will continue until the earlier of:
a borrower’s Federal income tax refund is offset against the borrower’s debt,
the guaranty agency stops the TOP offset proceedings on the account,
12 months (January ‐ December) have passed without a TOP offset occurring, or
when the debt is paid in full
The TOP charges a processing fee to carry out an offset. This amount can change each year.
The processing fee is added to the amount owed on the account when ED sends the information to
TOP for the agency. The processing fee is only charged if an offset occurs. The TOP deducts the fee
before returning the amount collected to ED but it is included in the amount reported to ED.
Amounts collected under the TOP are reported to the guaranty agency. However, the funds
themselves are transferred to ED. This form is used to reconcile TOP Offset transactions and
provide the guaranty agency with any funds due under this process.
Since ED reimburses a guaranty agency for its losses on default claims, ED receives
whatever is collected from borrowers through TOP offset. Collections received as a result of the
TOP offset process are the federal government’s collection, not the guaranty agencies. This section
is also used to report when the TOP unknowingly offsets a spouse’s portion (injured spouse) of a
joint income tax refund.
No amounts are deducted for:
the complement of the reinsurance percentage which was in effect when the reinsurance
payment was made by the Secretary for default claims, or
Revised: September 2017
Page 55
Guaranty Agency Financial Report (GAFR) Guide
the percent deducted from collections to help the guaranty agency pay for the cost of its
collection activities.
ED uses the information reported in these items for reporting and accounting purposes.
Though the TOP reports some summary level information directly to ED, an agency must provide
the detailed information requested here in order for ED to carry out its responsibilities under law
and regulation. TOP offset activities must be reported within 45 days after the guaranty agency
receives notice of TOP offset from the Department of Treasury.
Principal Amounts Column
The total amount offset or refunded for this TOP offset activity that was applied to the
portion of each borrower’s account that represents principal and purchased interest. If the amount
of the TOP offset results in the borrower overpaying the amount due on the borrower’s account,
then report that portion of the overpayment, which cannot be correctly charged to any category in
this column.
Interest Amounts Column
The total amount offset or refunded for this TOP offset activity that is applied to the portion
of each borrower’s account that represents accrued interest.
Other Amounts Column
The total amount offset or refunded for this TOP offset activity that is applied to the portion
of each borrower’s account, which represents other charges. Other charges can include only TOP
fees. This column is not applicable for reporting in MR‐18, Non‐Federal Share Offset.
MR-17 Treasury Offset
Enter the amounts offset against defaulted borrower’s Federal income tax funds by the U.S.
Internal Revenue Service under the Treasury Offset Program. The amount offset is used to reduce
each borrower’s FFEL Program loan indebtedness. Report all TOP offsets in this item, even if it
results in the borrower’s overpaying the amount due in the account. The overpayment is corrected
by refunding the appropriate amount to the borrower and reporting this in item MR‐ 4, TOP
Overpayments.
MR-18 Non-Federal Share Offset
Enter the amount of the non‐Federal share offset. The non‐Federal share offset is the
portion of the TOP offset, which is an amount equal to the complement of the reinsurance
percentage, which was in effect when the Secretary made the reinsurance payment for default
claims.
Revised: September 2017
Page 56
Guaranty Agency Financial Report (GAFR) Guide
The Other Amounts Column should not be used for this line item since any TOP fees should
be reported on line item MR‐4, MR‐17, and MR‐19, as appropriate. TOP fees are not applicable to
the Non‐Federal Share Offset.
MR-19 Treasury Offset Reversals
Enter the amount of Treasury offset reversals. A Treasury offset reversal (formerly injured
spouse claim) is the portion of the TOP offset made against that portion of a Federal income tax
refund which is attributable to the spouse of the defaulted borrower when a joint income tax return
is filed.
The spouse files a claim for this portion with the TOP. The TOP refunds the amount directly
to the spouse, and informs the guaranty agency, which then increases the defaulted borrower’s
account balance by the amount of the refund.
Status Changes - Account Balance at Conversion
This category reports on guaranty agency activities, which do not involve the receipt or
disbursement of funds between ED and a guaranty agency. ED needs this information for
accounting and other reporting purposes. This category also includes the account balance at
conversion for any additional amounts requested in MR‐3, Status Changes.
This category is used to report on reinsurance default and lender‐of‐last‐resort loan
(default) claims paid at 100 percent whose status changed to another claim category. This section is
also used to report change of status for bankruptcies that are not discharged and returned to
default or lender‐of‐last‐resort loan (default) claim status when originally repurchased as a default.
A guaranty agency must report this information to ED when a defaulted borrower:
dies;
becomes totally and permanently disabled;
files for bankruptcy;
has a loan discharged due to school closure; or
has a loan discharged due to false certification by the school
A change in status of a default claim paid at 100 percent has no effect on the amount of
reinsurance paid on the claim however the status change must be reported in this section.
Change of status for default claims paid at less than 100 percent are reported in MR‐3,
Status Changes for reimbursement of the complement. A guaranty agency is entitled to additional
reinsurance due to such a change. In addition, the account balance at conversion for these
additional reinsurance requests should be reported in this category, MR‐20 through MR‐22.
Account Balance at Conversion – Principal Amounts Column
Revised: September 2017
Page 57
Guaranty Agency Financial Report (GAFR) Guide
The balance for the amount of principal and purchased interest paid to the lender for the
default or lender‐of‐last‐resort loan (default) claim which is still outstanding (that is, collections
have not been received from the borrower on it) at the time this non‐payment activity report is
submitted to ED, for each type of claim for the reporting period.
Do not include amounts paid to lenders for other items such as accrued interest, late
charges, collection costs, and attorney’s fees in this column.
Account Balance At Conversion - Interest Amounts Column
The balance for the amount of accrued interest, which is still outstanding (that is,
collections have not been received from the borrower on it) at the time this non‐payment activity
report is submitted to ED, for each type of claim for the reporting period.
Account Balance At Conversion - Other Amounts Column
The balance for the amount of other charges which are still outstanding (that is, collections
have not been received from the borrower on it) at the time this non‐payment activity report is
submitted to ED, for each type of claim for the reporting period. This includes amounts for late
charges, collection costs, and attorney’s fees.
MR-20 Default/LLR to Death and Disability
Enter the amounts for default and lender‐of‐last‐resort loan (default) claims being reported
due to a change in status to death or disability. A death claim is one on which the loan is cancelled
due to the borrower’s death. This includes a Federal PLUS loan death claim paid to a lender when a
student, on whose behalf a parent received the Federal PLUS loan, dies. A disability claim is one on
which the loan is conditionally discharged due to the total and permanent disabil‐ ity of the
borrower and the loan is assigned to ED. Also include exempt claims being reported due to a change
in status to death or disability.
MR-21 Default/LLR to Closed School/False Certification
Enter the amounts for default and lender‐of‐last‐resort loan (default) claims being reported
due to the change in status to a closed school or false certification claim. A closed school claim is
one in which a claim is paid to a lender because the enrolled student was unable to complete the
program is due to the closure of the institution. A false certification claim is one on which a claim is
paid to a lender because the student’s eligibility to borrow under the FFEL Program was falsely
certified by an eligible institution of higher education. Also include exempt claims being reported
due to a change in status to closed school or false certification claim.
MR-22 Default/LLR to Bankruptcy
Enter the amounts for default and lender‐of‐last‐resort loan (default) claims being reported
due to the change in status of the default claim to a Chapter 7, 11, 12 or 13 Bankruptcy due to the
Revised: September 2017
Page 58
Guaranty Agency Financial Report (GAFR) Guide
Borrower filing for bankruptcy. During the course of the bankruptcy proceedings, the agency must
report and return to ED any amounts paid at the direction of the Bankruptcy Court on MR‐14,
Bankruptcy Collections. Also include exempt claims being reported due to a change in status of the
default claim to a Chapter 7, 11, 12 or 13 Bankruptcy.
MR-23 Bankruptcy to Default/LLR
Enter the amounts for Chapter 7, 11, 12 and 13 bankruptcies that are not discharged and
returned to default or lender‐of‐last‐resort loan (default) claim status. If the bankruptcy
proceedings are concluded and the loan is not discharged, then the agency must refund to ED any
additional bankruptcy reinsurance payment received and report it on MR‐9, Overstated Claims and
return the loan to its original reinsurance rate. The guaranty agency would continue to hold the
loan and attempt to collect on it like any other default or lender‐of‐last‐resort loan (default) claim.
However, the change in status must also be reported in this Section. Also include exempt claims
being reported due to a change in status of the default claim to a Chapter 7, 11, 12 or 13 bankruptcy
that are not discharged and return to default or lender or lender‐of‐last resort loan (default) claim
status.
Agency Accruals (Accounting Entries)
This Section reports on amounts owed to ED on accounts held by the guaranty agency,
including an estimate of the age of these amounts. ED uses this information in conjunction with
guaranty agency monthly/quarterly reporting, to calculate the guaranty agency’s Federal receivable
balances. The Federal receivable balance outstanding includes amounts for default, exempt and
default lender‐of‐last‐resort claims, accrued interest and other charges, on which reinsurance has
been requested by or paid to the guaranty agency based upon the account’s reinsurance percentage
rate of 100, 98, 95, 90, 88, 85, 80, 78, or 75.
Example: Loan balance (amount paid to lender $100.00), the Federal Receivable is 95 ($100.00 x
95%)
Do not include in the calculation the lender insurance percentage rate; i.e., $100.00 x 98% x
95%. This method will create the GA reimbursement amount or reimbursement percentage rate
and when combined with the complement amount creates a non‐reported shortage; i.e.
Incorrect Method Example:
Borrower balance
Complement amount
$100.00 * 98% * 95%
$ 93.10
($100%‐95%) * $100.00
5.00
GA Reimbursed amount plus complement
98.10
Non‐reported
Shortage in Federal Receivable calculation
1.90
Original borrower balance
$ 100.00
Revised: September 2017
Page 59
Guaranty Agency Financial Report (GAFR) Guide
This information is also needed in order to adjust ED’s financial records and comply with
federal government financial reporting requirements. This reporting only includes FFEL program
loans, on which claims have been paid to lenders and reinsurance has been requested or paid to the
guaranty agency. GA’s are required to submit this section monthly. All amounts reported in this
section (MR‐24 through MR‐26) can be positive or negative.
Amounts reported on line items MR‐24 through MR‐26, Agency Accruals, represents the
guaranty activity for the current reporting period, (e.g., monthly).
Principal Amounts Column
Enter the amount of principal and purchased interest activity for the reporting period,
based upon the account’s applicable reinsurance percentage Principal includes
all purchased interest because purchased interest must be capitalized by the guaranty agency. This
column is not applicable for reporting on MR‐26, Agency Accruals.
Interest Amounts Column
Enter the amount of accrued interest calculated by the guaranty agency on the loan
principal of a claim for collection from the borrower during the period being reported based upon
the account’s applicable reinsurance percentage rate (amount paid by ED).
Other Amounts Column
Enter the amount of fees, penalties, collection charges and any other charges based upon
the account’s applicable reinsurance percentage rate that has accrued for any loan for the reporting
period.
MR-24 Collection Terminations
Enter the dollar amount of the federal receivable balance (i.e. loan principal, accrued
interest, and other charges) on which the agency has decided to terminate collection activities and
not to make any further attempt to collect the amount due (i.e., loans with small balances, less than
$100). All collection terminations must meet standards approved by ED.
MR-25 Compromises
Enter the dollar amount of the federal receivable on which the agency has reached a
compromise agreement with the debtor. Compromise refers to a negotiated agreement between the
debtor and the guaranty agency to accept a payment of a lesser portion of the total debt as full
liquidation of the entire indebtedness. Guaranty agencies are permitted in certain cases to accept a
compromise amount from a debtor as full satisfaction of the debt to all parties (reference Dear
Agency Director Notice dated January 21, 1994).
Revised: September 2017
Page 60
Guaranty Agency Financial Report (GAFR) Guide
MR-26 Agency’s Accruals
Enter the amount of periodic interest accrued on loan principal for the current reporting
period of the agency (e.g. month). Include interest that is accrued and also collected in the same
period. Also report amounts of additional other charges (e.g., collection costs) added to the
borrowers’ accounts during the current reporting period. Include all accrued amounts deemed
collectible to which the Secretary is entitled to an equitable share.
Revised: September 2017
Page 61
Guaranty Agency Financial Report (GAFR) Guide
CHAPTER 2: GUARANTY AGENCY
FINANCIAL REPORT
MONTHLY/QUARTERLY
This Section reports on amounts owed to ED on accounts held by the guaranty agency,
including an estimate of the age of these amounts. ED uses this information in conjunction with
guaranty agency monthly payment reporting, to calculate guaranty agency’s Federal receivable
balances. This information is also needed in order to adjust ED’s financial records and comply with
federal government financial reporting requirements. This reporting only concerns FFEL program
loans, on which claims have been paid to lenders and reinsurance has been requested or paid to the
guaranty agency. Guaranty agencies are required to submit this section monthly. All amounts
reported in this section (MR‐27 through MR‐42) can be positive or negative.
Agency Accruals (Information)
ED uses line items MR‐27 through MR‐31 in conjunction with guaranty agency monthly
payment reporting, to calculate the guaranty agency’s Federal receivable balance. The Federal
receivable balance outstanding includes amounts for default, exempt and default lender‐of‐last‐
resort claims, accrued interest and other charges, on which reinsurance has been requested by or
paid to the guaranty agency based upon the account’s reinsurance percentage rate of 100, 98, 95,
90, 88, 85, 80, 78, or 75.
Example: Borrower loan balance to include Principal, interest and other charges x (times) the
reinsurance applicable loan percentage rate; i.e.95%
Example: Loan balance (amount paid to lender) $1,000.00 ($1,000.00 x 95%) = $ 950.00 Federal
Receivable.
Amounts reported on line items MR‐27 through MR‐31, Agency Accruals, represents the
guaranty agency activity for the current reporting period (e.g. monthly).
Enter all dollar amounts (positive and negative) to the nearest cent, and include decimal
point.
Principal Amounts Column
Enter the total amount of principal and purchased interest activity for the reporting period,
based upon the account’s applicable reinsurance percentage. Principal includes all purchased
interest because purchased interest must be capitalized by the guaranty agency.
Interest Amounts Column
Revised: September 2017
Page 62
Guaranty Agency Financial Report (GAFR) Guide
Enter total amount of accrued interest calculated by the guaranty agency on the loan
principal of a claim for collection from the borrower during the period being reported based upon
the account’s applicable reinsurance percentage rate.
Other Amounts Column
Enter total amount of fees, penalties, collection charges and any other charges based upon
the account’s applicable reinsurance percentage rate (amount paid by ED) that has accrued for any
loan for the reporting period. No reporting is required in the Other Amounts column for line item
MR‐32 Ending Balance on Defaulted Loans.
MR-27 Default FFELP Loans Consolidated By Direct Loan Program
Enter the federal receivable amount of Federal Family Education Loan Program loans,
which were consolidated in the William D. Ford Direct Loan Program during the period being
reported.
MR-28 Subrogated Loans
Enter the federal receivable amount for subrogated loans (permanent assignments to ED).
Report only subrogated loans that are accepted by the Debt Collection Service during the reporting
period.
MR-29 Default Loans Transferred Out
Enter the federal receivable amount transferred to another guaranty agency during the
reporting period. Report only those accounts that have been accepted by another guaranty
agency during the period being reported. Do not include loan guarantees, loans in repayment or
loans where the status is, or has changed to death, disability, bankruptcy, closed school, false
certification, settled loans or loans written‐off.
MR-30 Default Loans Transferred In
Enter the federal receivable amount transferred to the agency from another guaranty
agency during the reporting period. Do not include loan guarantees, loans in repayment or loans
where the status is, or has changed to death, disability, bankruptcy, closed school or false
certification.
MR-31 Other Transactions Affecting Federal Receivable
Enter the federal receivable amount that is not reported elsewhere on this report. Include
balances (total balance due) of $25.00 or less that do not meet the requirements for MR‐24,
Collection Terminations or MR‐25, Compromises. Any amounts reported in MR‐31 must be
accompanied by details (in the GA Comment section of the GAFR) to support the entry (i.e.,
Revised: September 2017
Page 63
Guaranty Agency Financial Report (GAFR) Guide
reference to line item(s) and applicable amount(s). Details reported in the GA Comment section
should support the total amount reported in MR‐31. Positive amounts represent a decrease in the
federal receivable balance and negative amounts represent an increase in the federal receivable
balance.
Until the Guaranty Agency Financial Report (GAFR) is revised, use this line item to report
the federal receivable portion of unpaid refund discharges, teacher loan forgiveness discharges, and
Consolidation loan partial discharges on guaranty agency held loans. Effective July 1, 2014, use this
line item to report rehabilitation loan assignments to the Department under the Rehabilitation
Loan Purchase Program. Use the GA comment section of this report to identify amounts associated
with loans (rehabilitation) sales to Education.
In the GA Comment section identify all line item adjustments with corresponding amounts
in addition to unpaid refund discharges, teacher loan forgiveness discharges, and rehabilitated loan
assignments. Please indicate for each transaction whether the transaction is an increase or decrease
to the federal receivable balance.
Example: A guaranty agency has two requests for discharges on loans they hold:
Borrower
#1
#2
Subtotal
Amount
$ 1,000,00
500.00
Reinsurance Reimbursement Federal Receivable
1000*98%
500*95%
$980.00
$475.00
1,455.00
The amount entered in MR‐31, Other Transactions Affecting Federal Receivable, Principal
Amount is $1,455.00.
MR-32 Ending Balance of Defaulted Loans
This dollar amount reflects the agency’s total outstanding federal receivable on the accrual
basis at month end. The sum of MR‐33 through MR‐40, Delinquency by Debt category should equal
total principal and interest reported in this line item.
In addition the Department of Education (ED) uses guaranty agency reporting to establish
the federal receivable and check for reasonability. Below is the methodology that should serve as a
guide for reporting the Federal Receivable Balance on Line Item MR‐32, Ending Balance on
Defaulted Loans.
Instructions: Start with the preceding periods ending balance as the beginning Federal Receivable
Balance (MR‐32, Ending Balance on Defaulted Loans). From that balance add and subtract the
current period activity to arrive at the Federal Receivable Balance at the end of the period. Then
compare the period calculated federal receivable balance with the period’s ending balance as
reported on MR‐32 Ending Balance on Defaulted Loans. Check for reasonability.
(+) The preceding periods ending Federal Receivable Balance as reported on MR‐32, Ending
Balance on Defaulted Loans.
(+) Additions to the Federal Receivable Balance:
Revised: September 2017
Page 64
Guaranty Agency Financial Report (GAFR) Guide
Claims Paid (Principal)
MR‐1‐A, Defaults
MR‐1‐B, Exempt and Lender of Last Resort
Activity on Accounts and Non‐Payment Activity (Principal and Interest)
MR‐4, TOP Overpayments
MR‐18, Non‐Federal Share Offset
MR‐19, Treasury Offset Reversals
MR‐23, Bankruptcy to Default/Lender of Last Resort
Status Changes (Principal and Interest)
MR‐3‐A, Death/Disability
MR‐3‐B, Closed School/False Certification
MR‐3‐C, Bankruptcy
Agency Accruals (Principal and Interest)
MR‐26, Agency’s Accruals
MR‐30, Default Loans Transferred In
(‐) Decreases to the Federal Receivable Balance
CFY and PFY Repurchases (Principal)
MR‐5‐A, MR‐6‐A, Defaults
MR‐5‐B, MR‐6‐B, Exempt/Lender of Last Resort
CFY and PFY Partial Refunds (Principal)
MR‐7‐A, MR‐8‐A, Defaults
MR‐7‐B, MR‐8‐B, Exempt/Lender of Last Resort
Overstated Claims (Principal)
MR‐9‐A, Defaults
MR‐9‐B, Exempt/Lender of Last Resort
Payments to ED for Rehabilitated Loans, FFEL Consolidation refunds and collections on
defaulted loans:
MR‐10, Rehabilitated Loan Refund (Principal Amount)
MR‐10‐A, Rehabilitated Loans (Principal and Interest Amounts)
MR‐11, FFEL Consolidation Refund (Principal and Interest Amounts)
MR‐12, Administrative Wage Garnishment (Principal and Interest)
MR‐12‐B, Administrative Wage Garnishment – GA Retention (Principal and
Interest)
MR‐13, Default Collections (Principal and Interest)
MR‐13‐B, Default Collections – GA Retention (Principal and Interest)
Non‐Payment Activity (Principal and Interest)
MR‐17, Treasury Offset
MR‐20, Default/Lender of Last Resort to Death/Disability
MR‐21, Default/Lender of Last Resort to Closed School/False Certification MR‐22,
Default/Lender of Last Resort to Bankruptcy
MR‐24, Collection Terminations MR‐25, Compromises
MR‐27, Default FFEL Consolidated by Direct Loan Program
MR‐28, Subrogated Loans
MR‐29, Default Loans Transferred Out
(+/‐) Increase or Decrease to the Federal Receivable Balance
MR‐31, Other Transactions Affecting Federal Receivable
(=) Ending Federal Receivable Balance. The sum of the amounts shown above is used to
derive an ending receivable balance at period end. This Federal Receivable Balance amount
is compared to the Federal Receivable Balance as reported on the GAFR, Line Item MR‐32
at period end. MR‐32, Ending Balance on Defaulted Loans should also be the total of MR‐
Revised: September 2017
Page 65
Guaranty Agency Financial Report (GAFR) Guide
33 through MR‐40, Delinquency by Debt Section.
Revised: September 2017
Page 66
Guaranty Agency Financial Report (GAFR) Guide
Delinquency by Debt
These line items report amounts owed to ED on accounts held by the guaranty agency at
month end, including an estimate of the age of these amounts. This information is needed in order
to ED’s financial records and to comply with federal government financial reporting requirements.
Only report FFEL Program loans on which claims have been paid to lenders and reinsurance has
been requested by or paid to the guaranty agency. Report only on accounts held by the guaranty
agency on borrowers’ loans, whether or not the guaranty
agency has a repayment schedule
with the borrower.
Amounts reported on line items MR‐32 through MR‐40, Delinquency by Debt, represent the
agency’s outstanding federal receivable balance at the end of the reporting period based upon the
account’s applicable reinsurance percentage rate. These amounts are cumulative from the inception
of the FFEL program. Include all loans since the beginning of the agency’s FFEL Program
participation on which default, exempted and default lender‐of‐last‐resort claims have been paid
and on which a balance is outstanding.
Do Not Include:
Loans permanently assigned to ED are not to be reported in this section because the agency
no longer holds the account.
Amounts for repurchased, rehabilitated loans
Defaulted loans consolidated under the Federal Direct Loan Program.
Loans that are in a bankruptcy status
Loans for the following types of claims: bankruptcy, death and disability and closed school
or false certification.
When reporting an outstanding balance owed to ED, include only that portion of an account
that is based upon the applicable reinsurance reimbursement rate. Though the guaranty agency
may estimate the outstanding balance for each aging category, the sum of the amounts reported
must accurately reflect the total Federal Receivable at the agency.
MR-33 Not Delinquent
If a borrower complies with a repayment schedule, then the account is reported as not
delinquent. Also include accounts if the first scheduled payment is not due by the last day of the
month covered by this report.
MR-34 (1 – 90 Days) through MR-40 Over 10 Years
Enter the outstanding dollar amount for the number of days that the borrower is
delinquent:
Revised: September 2017
Page 67
Guaranty Agency Financial Report (GAFR) Guide
On the repayment schedule established by the lender before the guaranty agency’s payment
of the lender’s claim, or
An amount for accounts that has been scheduled or rescheduled under a repayment
agreement, but the borrower is not meeting the repayment agreement.
The first day of delinquency is the day after the due date of the first missed scheduled or
rescheduled payment not later made.
Since a claim is usually not paid to a lender until after—
180 days of delinquency for loans delinquent before 10/7/98, and
270 days for loans delinquent on or after 10/7/98,
The sum of MR‐33 through MR‐40 should equal MR‐32, Ending Balance on Defaulted Loans
on the accrual basis.
Bankruptcy Reporting
MR-41 Ending Balance on Bankruptcies
Line item MR‐41, Ending Balance on Bankruptcies, represents the outstanding bankruptcy
balance at the end of the period being reported and amount is not reduced by any reinsurance rate
but reported at 100% of balance. This amount is cumulative from the inception of the FFEL
program. Enter the dollar amount that reflects the agency’s total outstanding federal balance for
bankruptcies (at 100% rate) on the accrual basis at the end of the period being reported.
MR-42 Bankruptcies Transferred Out
Line item MR‐42, Bankruptcies Transferred Out, represents the activity for the current
reporting period (report at 100% of balance).
Enter the dollar amount that reflects principal, interest and other charges associated with
bankruptcy accounts transferred to another guaranty agency at 100% rate for the period being
reported (for example bankruptcy transfers to the Educational Credit Management Corporation
(ECMC) or to ED.
Revised: September 2017
Page 68
Guaranty Agency Financial Report (GAFR) Guide
CHAPTER 3: GUARANTY AGENCY
FINANCIAL REPORT ANNUAL
The Annual Report (AR) provides the Department with information on the guaranty
agency’s activities concerning loan guarantees, claims paid to lenders and the agency’s financial
activities, including activities concerning its Federal Fund, and the agency’s Operating Fund.
Guaranty agency reporting on the restricted account is no longer required. Information in this
section must reflect activity under all FFEL programs (Federal Stafford, PLUS Loans, Federal SLS,
Federal Consolidation and Unsubsidized Stafford Loans for Middle‐Income Borrowers) in, or as of
the end of, the federal fiscal year. The Annual Report must be submitted to ED no later than 60 days
after the end of the federal fiscal year (September 30th).
Amounts reported in the Federal Fund and Operating Fund reflects the annual uniform
financial projections for guaranty agencies. Data collected will also provide the Department a basis
for:
financial reviews,
evaluating the current and projected financial status of guaranty agencies,
projecting the impact of changes in revenue, and
managing guaranty agency federal funds held by the agency
The guaranty agency’s books of account must support all amounts reported. The amounts
reported must be on an accrual basis for, or through, the end of the federal fiscal year. This
must be done regardless of the agency’s method and period of accounting used for its annual
audited financial statements and other financial reports. All amounts reported in this section for
Current Fiscal Year (AR‐15 through AR‐57) can be positive or negative.
During previous fiscal years several guaranty agencies merged and more agencies may
merge or otherwise change structure in the future. In order to maintain a reasonable database with
respect to the last quarter of operation of an agency, an Annual Report must be completed and
submitted to ED by the merging and succeeding guarantor. If a merger occurs, both guaranty
agencies guaranty agencies must coordinate to ensure accurate reporting.
The merging guaranty agency should report on all Annual Report line items, as appropriate,
and according to the instructions.
The gaining guaranty agency should report on AR‐6, Loans Transferred In; and the Federal
Fund balance from the merging guarantor received in AR‐20, Federal Fund Other Revenues
After a guaranty agency’s Annual Report is accepted by ED, it is still possible that an error
may be discovered and an adjustment will be needed. ED defines an adjustment as a change to an
agency’s Annual Report after acceptance. Guaranty agencies are able to submit amended Annual
Reports via the GAFR web application only.
NOTE: No amended Annual Reports should be entered into the Financial Management web
application prior to FSA’s review and acceptance of the proposed amendment. Proposed
amendments that affect the prior fiscal year’s Federal Fund balance will not be accepted in the
Revised: September 2017
Page 69
Guaranty Agency Financial Report (GAFR) Guide
current fiscal year. These adjustments will have to be made in the next fiscal year. Proposed
amendments that do not affect the Federal Fund balance and are accepted by FSA may be entered
into the Financial Management web application in the current fiscal year.
Enter all dollar amounts to the nearest dollar. Do not include decimal points and cents. ED
always assumes that the last digit in the dollar amount field represents dollars, not cents. To
facilitate accurate reporting, where possible FSA began prepopulating a number of fields. Where
applicable, the formula is displayed.
The GAFR Annual Report must be completed and submitted for a federal fiscal year of
activity after the end of that federal fiscal year and must be received by ED within 60 days after the
end of the fiscal year. Enter the Guaranty Agency Code, the Guaranty Agency State Name, and the
Federal Fiscal Year Ending date. Enter the date as MM/CCYY.
Loans in Repayment (LIR)
This section shows the agency’s activities concerning loan guarantees and claims paid to
lenders. Report on all loans originally guaranteed by the agency under the FFEL Program, even if
these loans were later canceled or later lost their insurance or reinsurance.
LIR = [AR‐1] – [AR‐2] + [AR‐3] – [AR‐4] – [AR‐5] + [AR‐6] – [AR‐7] – [AR‐8] – [AR‐9] – [AR‐10] –
[AR‐11] – [AR‐12] – [AR‐13] – [AR‐14]
All amounts reported in AR‐1 through AR‐12 are cumulative since the beginning of the
agency’s participation in the FFEL Program. Line Items AR‐13 and AR‐14 should reflect point in
time end‐of‐fiscal year status.
Information submitted in this section should be consistent with and comparable to relevant
information reported to the National Student Loan Data Systems (NSLDS).
AR- 1 Loans Guaranteed (Except Federal Consolidation)
Enter the original principal guaranteed dollar amount of all loans guaranteed.
Do not:
reduce by any cancellation or
include amounts of loan guarantees transferred in from another guaranty agency.
AR- 2 All Loans Canceled (Except Federal Consolidation)
Enter the original principal amount of loans canceled before first disbursement, loans
disbursed where the lender’s check is returned uncashed, the lender’s check remains uncashed 120
days after disbursement, the electronic funds transfer (EFT) is not completed, or the amount of the
loan disbursed by EFT is returned within 120 days of the transfer.
School refunds are not to be reported in AR‐2 if:
an amount is returned to the lender within 120 days after the lender’s check is
cashed or the EFT is completed, treat it as a cancellation;
Revised: September 2017
Page 70
Guaranty Agency Financial Report (GAFR) Guide
a loan has multiple disbursements, and part is canceled under these conditions, and
the rest is never disbursed, include the cancelled part of the loan amount in this
item (the amount never disbursed); and
only part of a loan is canceled under these conditions, include that part of the loan
amount here.
AR- 3 Federal Consolidation Loans Guaranteed
Enter the original principal dollar amount of federal consolidation loans guaranteed before
any cancellation.
Include:
any interest capitalized by the lender or
the borrower interest due on the underlying loans at the time they are consolidated.
Do not include:
amounts of loan guarantees transferred in from another guaranty agency.
AR- 4 Federal Consolidation All Loans Canceled
Enter the original principal amount of federal consolidated loans canceled before first
disbursement; loans disbursed where the lender’s check is returned uncashed; the lender’s check
remains uncashed 120 days after disbursement; the electronic funds transfer (EFT) is not
completed; or the amount of the loan disbursed by EFT is returned within 120 days of the transfer.
AR- 5 Uninsured Loans
Enter the original principal amount of loans, which have lost insurance and are not eligible
for cure under ED regulations. When loan losses insurance it means the guaranty agency will not
pay a claim to a lender, or if it did, the lender refunded the claim amount. Any loan, which loses
insurance also, loses eligibility for reinsurance.
Do not include:
any loan amount(s), which were canceled in this item, whether the amount was canceled
before or after disbursement. A canceled loan is not considered to be uninsured as these
terms are used in the annual report.
AR- 6 Loans Transferred In
Enter the original principal amount, net of cancellations prior to or subsequent to the date
of transfer, of all loan guarantees transferred to this agency from other guaranty agencies (prior to
default).
Revised: September 2017
Page 71
Guaranty Agency Financial Report (GAFR) Guide
Include:
voluntary transfers. A voluntary transfer is at the request of a borrower, lender or guaranty
agency to the agencies involved prior to any claim submittal to maintain the borrower
records with one agency.
involuntary transfers. An involuntary transfer, often referred to as the “Secretary’s Plan” is a
transfer directed or requested by the Secretary of Education. The Secretary’s Plan protects
the interest of the FFEL Program when a guaranty agency faces insolvency or otherwise
may not be able to carry out its program responsibilities.
AR- 7 Loans Transferred Out
Enter the original principal amount, net of cancellations prior to date of transfer, of all FFEL
loan guarantees transferred to another guaranty agency (prior to default).
Include loan guarantees transferred to the Department as authorized in legislation.
Reduce AR‐7 to reflect the transfer of loans from the Department back to the guaranty
agency where a loan was originally sold in error.
Entries must be reported as positive numbers.
AR- 8 Default Claims Paid
Enter the amount paid to lenders for default, exempt (include claims where the student has
been convicted of, or plead nolo contendere to, a crime involving fraud in obtaining title IV student
aid and claims where the borrower is a victim of identity theft) and default lender‐of‐last‐resort
loans. A default claim is one on which the borrower failed to make an installment payment when
due as defined in regulations.
Regardless of whether the effective date of the borrower payment, received from a lender
and forwarded to the guaranty agency for the loan, is before or after an insurance claim was paid,
treat the payment as a refund and subtract the amount of refunded principal from this amount.
Note:
Borrower payments received by the lender and forwarded to the guaranty agency, whether
before or after claim payment or receipt of reinsurance, are not subject to collection
retention and should be reported here.
School refunds received before reinsurance claim filing should be deducted from the claim
request amount and school refunds received after reinsurance filing should be treated as a
refund of reinsurance and deducted from amounts reported in this item.
If a lender repurchases (full refund of reinsurance) a loan previously paid as a default, by
the agency, subtract the principal amount that was repurchased by the lender.
Revised: September 2017
Page 72
Guaranty Agency Financial Report (GAFR) Guide
If a loan is rehabilitated, subtract the amount of outstanding principal on the loan at the
time the loan is repurchased by the lender. If a loan is rehabilitated loan and assigned to the
Department through the Rehabilitation Loan Purchase Agreement., do not subtract the
outstanding principal.
If a defaulted FFEL loan is consolidated under a Federal Direct Consolidation Loan, do not
subtract any amount from this item.
Claims, which lose insurance, must also be deducted from this amount. If ED has paid a
default reinsurance claim to the guaranty agency in such a situation, then the claim amount
must be reported and refunded to ED using the monthly report.
If the loan loses reinsurance, but not insurance, then leave this amount unchanged.
AR- 9 Bankruptcy Claims Paid
Enter the amount of principal paid to lenders for all types of bankruptcy claims (including
Chapters 7, 11, 12 and 13).
If the agency receives a payment from a lender for the loan after a bankruptcy insurance
claim was paid, treat the payment as a refund and subtract the amount of refunded lender principal
from this amount. However, if the agency receives a payment at the direction of the Bankruptcy
Court during the course of the bankruptcy proceedings, then treat it as a collection and report it on
the monthly report.
If the Bankruptcy Court does not discharge the loan, then the guaranty agency must arrange
for a lender to repurchase it. Subtract the amount of repurchased principal from this amount. If ED
has paid a bankruptcy reinsurance claim to the guaranty agency on the loan, then the reinsurance
claim amount must be reported and refunded to ED, within 45 days, on the monthly report.
If the borrower subsequently defaults after the repurchase, then treat the loan like any
other default and report the amount in items AR‐8, Default Claims Paid‐Amount. A guaranty agency
may also file with ED for default reinsurance on the loan using monthly report.
Do not include:
claims paid as defaults where the borrower files for bankruptcy after the default claim was
paid. Report such default claims in item AR‐8, Default Claims Paid‐Amount.
AR-10 Death and Disability Claims Paid
Enter the amount of principal paid to lenders for death, and for total and permanently
disability claims.
Revised: September 2017
Page 73
Guaranty Agency Financial Report (GAFR) Guide
A death claim is one on which the loan is canceled due to the death of the borrower or a
dependent student. This includes a Federal PLUS loan death claim paid to a lender when a
student, on whose behalf a parent received the Federal PLUS loan, dies.
A disability claim is one on which the loan is conditionally discharged due to the total and
permanent disability of the borrower.
If a lender repurchases a loan, which had been previously paid as a death or disability claim
by the agency (that is, the agency paid an invalid claim), subtract the amount of repurchased
principal from this amount. The lender may also repurchase the loan if a borrower reaffirms a debt
previously paid as a disability claim.
AR-11 Closed School/False Certification Claims Paid
Enter the amount of principal paid to lenders for closed school and/or false certification
claims.
A closed school claim is one on which a claim is paid to a lender because the student was
unable to complete the program in which the student was enrolled due to the closure of the
institution.
A false certification claim is one on which a claim is paid to a lender because the student’s
eligibility under the FFEL Program was falsely certified by the eligible institution of higher
education.
If a lender repurchases a loan, which had been previously paid as a closed school or a false
certification claim by the agency (that is, the agency paid an invalid claim), subtract the amount of
repurchased principal from this amount.
Also include in this line refund amounts related to unpaid refund, teacher loan forgiveness,
and partial discharges of consolidation loans.
An unpaid refund, in the case of an open or closed school, is a discharge of a former or
current borrower’s (and any endorser’s) obligation to repay that portion of a FFEL loan
(disbursed on or after January 1, 1986) equal to the refund that should have been made by
the school. Include in this amount any accrued interest and other charges associated with
the unpaid refund, which are also discharged.
Teacher loan forgiveness is a discharge of a borrower’s obligation to repay up to $5,000 or
up to $17, 500 of their outstanding student loan balances. Forgiveness is available to a
borrower who has no outstanding balance on the date he or she obtains a loan after October
1, 1998.
A partial discharge of a consolidation loan occurs when a loan was obtained jointly by a
married couple if one of the borrowers dies or becomes totally and permanently disabled.
Revised: September 2017
Page 74
Guaranty Agency Financial Report (GAFR) Guide
The amount of the consolidation loan that is discharged is equal to the portion of the
outstanding balance of the consolidation loan, as of the date the borrower died or became totally
and permanently disabled, attributable to any of that borrower's loans that would have been
eligible for discharge.
In accordance with the unpaid refund, teacher loan forgiveness provisions, and the partial
discharge of consolidation loans provisions, calculate the amount paid to lenders for discharges.
Add to this figure the amount of the reinsurance complement requested by the agency on
loans it holds for which the borrower qualifies for unpaid refund, teacher loan forgiveness
discharge, or partial discharge of a consolidation loan.
AR-12 Loans Paid-In-Full
Enter the original principal amount (net of cancellations) of all loans that have been paid‐in‐
full or are presumed paid‐in‐full (e.g., the loan has been in repayment 12 or more years and there
has been no update to the outstanding balance in four (4) years.
For loans that were paid through consolidation, report the sum of the original principal
amount for each individual loan that was discharged. This includes Federal Stafford (both
subsidized and unsubsidized, including Unsubsidized Loans for Middle‐Income Borrowers), Federal
PLUS Loans and Federal SLS Loans.
If a Federal Consolidation Loan has been paid‐in‐full report the original principal amount of
the Federal Consolidation Loan. Underlying loans associated with a Federal Consolidation Loan
should be reported as PIF at the time of consolidation.
Do not include:
loan amounts in a consolidation due to a Federal Consolidation Loan that were guaranteed
by other agencies.
AR-13 Federal Stafford and Unsubsidized Stafford Interim Loans
Enter the principal amounts, net of cancellations, of all Federal Stafford loans and
Unsubsidized Stafford Loans for borrowers who are in school or in their grace period as of the last
day of the reporting year
AR-14 Total Loans in Deferment Prior to First Payment
Enter the original principal amount, net of cancellations, of all FFEL program loans that
entered deferment status before the first payment became due and are in deferment status at the
end of the reporting year.
Revised: September 2017
Page 75
Guaranty Agency Financial Report (GAFR) Guide
Financial Report Introduction
The financial activity reported in the Federal Fund, Operating Fund, and Balance Sheet
sections should reconcile to the amounts reported on the Guarantor’s audited financial statements
(accrual basis). If there are any differences between the net assets on the audited financial
statement and the ending
balance as submitted on AR‐57, Federal Fund Balance in the Balance Sheet Section, guarantors must
submit a schedule explaining those differences to the Department. These schedules should be sent
via e‐mail to [email protected]. Data collected will also provide the Department with a basis
for:
financial reviews,
validating the current and projected financial status of guaranty agencies,
projecting the impact of changes in revenue, and
managing guaranty agency federal funds held by the agency.
Federal Fund
The activity reported in this section should reconcile to the amounts reported on the
Guarantor’s audited financial statements (accrual basis). Projected yearly estimates are required
for line items AR‐16 through AR‐26, with the exception of AR‐24, Transfer to Operating Fund for
Account Maintenance Fee. The ending balance should equal the ending balance on AR‐57 (Federal
Fund Balance Sheet Section).
AR-15 Beginning Balance (from AR-26 as of 9/30/XX)
Current Year ‐ Report prior FY ending balance, AR‐26.
Projected Years ‐ Same as AR‐26, Ending Balance for the previous fiscal year.
AR-16 Investment Income
Current Year ‐ Report investment income recognized in the Federal Fund, including net
increase (decrease) in fair value of investments. If the agency is required by state law to combine
FFEL program funds with other state funds for investment purposes, then the agency must
establish a method for allocating a portion of the earnings to the FFEL program and must maintain
documentation on the allocation method.
Do not include:
interest earned on the Restricted Account, it should be reported in item AR‐36 Other
Revenue (FFEL and Non‐FFEL) and earmarked for default prevention activities.
Interest activity previously reported on AR‐49 (Restricted Account Cash, Cash Equivalents
and Investments) should be reported here on AR‐16.
Revised: September 2017
Page 76
Guaranty Agency Financial Report (GAFR) Guide
Projected Years ‐ Report projected investment income on the Federal Fund.
AR-17 Reinsurance from ED
Current Year ‐ This line item is pre‐populated based on monthly reporting and cannot be
changed or modified. Adjustments or discrepancies to the pre‐populated amount should be
reported in AR‐20, Other Revenues or AR‐25, Other Expenses, as appropriate. The populated
amount is the Federal reinsurance from ED, net of refunds, overpayments and repurchases, for
defaults, bankruptcies, death, disability, closed school, false certification teacher loan forgiveness
discharges and unpaid
refunds.
[AR‐17] = Amount Due To/(From) Guarantor for [MR‐1], Claims Paid + [MR‐3], Status Changes –
[MR‐5], Repurchases‐CFY – [MR‐6], Repurchases‐PFY –
[MR‐7], Partial Refunds‐CFY – [MR‐8], Partial Refunds‐PFY – [MR‐9],
Overstated Claims for the fiscal year being reported.
Projected Years ‐ Defaults on loans originated prior to FFY 94 receive maximum 100%
reinsurance. Defaults on loans originated on or after FFY 94 through FFY 98 receive a maximum
98% reinsurance. And defaults on loans originated on or after FFY 98 receive a maximum of 95%
reinsurance. Multiply line item AR‐21 by the weighted reinsurance “percentage”.
AR-18 Collections of Defaulted Loans – Reinsurance Complement
Current Year ‐ Report the reinsurance complement collected on defaulted loans. This
amount should equal the twelve months reported fiscal year to date (FYTD) on the monthly GAFR,
Line Items MR‐10 through MR‐13 for the current FFY.
Reinsurance Complement = Total Collected ‐ Secretary’s Share ‐ GA Retention
For comparison and reasonability editing ED will estimate reinsurance complement on MR‐
10, Rehabilitated Loans.
Guarantors are required to transfer the complement of the reinsurance rate, which was not
reimbursed by the Department on collections of defaulted loans to the Federal Fund.
Projected Years ‐ Report projected amount of the reinsurance complement from
collections on FFEL loans.
AR-19 Insurance Premiums
Current Year ‐ Report the Federal default fee amount recognized. Effective for loans
guaranteed on or after July 1, 2006, the optional 1 percent insurance premium (guarantee fee) has
been eliminated and replaced by a mandatory Federal default fee. The fee is equal to 1 percent of
the principal amount of loans guaranteed on or after July 1, 2006 – June 30, 2010.
Revised: September 2017
Page 77
Guaranty Agency Financial Report (GAFR) Guide
Projected Years ‐ Enter the amount of projected revenue to be recognized.
AR-20 Other Revenues
Current Year ‐ Report other revenues not reported elsewhere in the Federal Fund section.
Include deferred revenues in this line item. Report itemized entries (description and
amount) to support total reported in this line item. (See Attachment A) Itemized entries may
include: Secretary’s Share on collections, Secretary’s fee on defaulted FFEL and Direct Loan
Consolidation loans (up to 8.5% of collection costs charged the borrower), excess consolidation
proceeds, OIG interest penalty, vehicle sales, audit findings, IRS refund reimbursement; 48 hour
settlement, utilities, and usage fees. These examples are not all inclusive.
Projected Years ‐ Report other projected revenues not reported elsewhere in the Federal
Fund section. Report itemized entries (description and amount) to support total reported in this
line item. (See Attachment A)
AR-21 Claims Expensed to Lenders
Current Year ‐ This line item is pre‐populated based on monthly reporting and cannot be
changed or modified. Adjustments or discrepancies to pre‐populated amount should be reported in
AR‐20, Other Revenues or AR‐25, Other Expenses, as appropriate.
[AR‐21] = [MR‐1‐A], Defaults (Other Amounts) + [MR‐1‐B], Exempt/Lender of Last Resort +
[MR‐1‐C], Death/Disability + [MR‐1‐D], Closed School/False
Certification + [MR‐1‐E], Bankruptcy + [MR‐1‐F], Unpaid Refunds + [MR‐
1‐G], Discharges – [MR‐5‐A through MR‐5‐E] Repurchases, CFY, (Principal, Interest, and
Other Amounts) – [MR‐6‐A through MR‐6‐E], Repurchases‐
PFY (Principal, Interest, and Other Amounts) – [MR‐7‐A through MR‐7‐E], Partial Refunds‐
CFY, (Principal Amount) – [MR‐8‐A through MR‐8‐E],
Partial Refunds‐PFY, (Principal Amount)
Projected Years ‐ Report projected amount of total claims expensed. Provide methodology
for this estimate.
AR-22 Recall of Federal Funds to the Restricted Account
No reporting required for this line item.
AR-23 Transfer to Operating Fund for Default Aversion
Current Year ‐ Report net Default Aversion expense recognized for delinquent loans for
which agencies receive lender requests for default aversion assistance and for which payment is
authorized under the Department’s regulation and guidance for the current federal fiscal year.
Amount should agree or be reconcilable to line AR‐30, Default Aversion Fee Revenue.
Revised: September 2017
Page 78
Guaranty Agency Financial Report (GAFR) Guide
Projected Years ‐ Project net Default Aversion expense to be recognized for delinquent
loans for which agencies receive lender requests for default aversion assistance and for which
payment is authorized under the Department’s regulation and guidance for the current federal
fiscal year. Amount should agree or be reconcilable to line AR‐30, Default Aversion Fee Revenue.
AR-24 Transfer to Operating Fund for Account Maintenance Fee
Current Year - As applicable, report the amount transferred from the Federal Fund for account
maintenance fee for the current FY. Amount should reconcile to line AR-33, Transfer from
Federal Fund for Account Maintenance Fee.
No reporting required for this line item
AR-25 Other Expenses
Current Year ‐ Report other expenses not reported elsewhere in the Federal Fund section.
Report itemized entries (description and amount) to support total reported in this line item.
(See Attachment A) Itemized entries may include: Secretary’s share on collections,
Secretary’s fee on defaulted FFEL and Direct Loan Consolidation loans (up to 8.5% of
collection costs charged the borrower), excess consolidation proceeds), premium fee
refunds to lenders, early withdrawal counseling fee, GA portion of $250M recall, refund of
insurance premiums, depreciation, IRS tax offset, and prior year accruals.
Projected Years ‐ Report other projected expenses not reported elsewhere in the Federal
Fund section. Report itemized entries (description and amount) to support total reported in this
line item. (See Attachment A)
AR-26 Ending Balance
Current Year ‐ The ending balance must equal the sum of AR‐15 through AR‐20 minus AR‐
21 through AR‐25 as well as the ending balance on AR‐57 (Federal Fund Balance Sheet Section).
[AR‐26] = [AR‐15] + [AR‐16] + [AR‐17] + [AR‐18] + [AR‐19] + [AR‐20] –[AR‐21] – [AR‐22] – [AR‐23]
– [AR‐24] – [AR‐25] [AR‐26] = AR‐57]
Projected Years ‐ The projected ending balance must equal the sum of AR‐15 through AR‐
20 minus AR‐21 through AR‐25
Supplemental Information
AR-27 Amount transferred from Federal Fund to Operating Fund for
Operating Expenses (Repayable)
No reporting required for this line item.
Revised: September 2017
Page 79
Guaranty Agency Financial Report (GAFR) Guide
AR-28 Amount received from Operating Fund to Repay Advance for
Operating Expenses
No reporting required for this line item.
Operating Fund
The activity reported in this section should reconcile to the amounts reported on the
Guarantor’s audited financial statements on an accrual basis. Projections are required for line
items AR‐29 thorough AR‐40, except AR‐33 and AR‐40.
AR-29 Beginning Balance (from 9/30/XX)
Current Year ‐ Report prior FFY ending balance, AR‐40.
Projected Years ‐ Same as AR‐40, Ending Balance for the previous fiscal year.
AR-30 Default Aversion Fee Revenue
Current Year ‐ Report DAF revenue recognized for delinquent loans for which agencies
receive lender requests for default aversion assistance and for which payment is authorized by
Department’s regulations and guidance. Amount should reconcile to line AR‐23, Transfer to
Operating Fund for Default Aversion.
Projected Years ‐ Report projected DAF revenue to be recognized for delinquent loans for
which agencies receive lender requests for assistance and for which payment is authorized by the
Department’s regulations and guidance. Amount should reconcile to line AR‐23, Transfer to
Operating Fund for Default Aversion.
AR-31 Loan Processing and Issuance Fee Revenue
Current Year ‐ Report loan processing and issuance fee revenue recognized.
Projected Years ‐ No reporting required for this line item.
AR-32 Account Maintenance Fee Revenue Received from ED
Current Year ‐ Report account maintenance fees recognized from the Department.
Projected Years ‐ Report projected account maintenance fees to be recognized from the
Department.
Revised: September 2017
Page 80
Guaranty Agency Financial Report (GAFR) Guide
AR-33 Transfer from Federal Fund for Account Maintenance Fee
Current Year ‐ Report account maintenance fees recognized subject to Federal Fund
settlement (AR‐24, Transfer to Operating Fund for Account Maintenance Fee) when amount
exceeds ED’s budgetary cap. No reporting required for this line item.
AR-34 Collections of Defaulted Loans less Reinsurance Complement (GA
Collection Retention)
Current Year ‐This line item is pre‐populated based on monthly reporting and cannot be
changed or modified. Adjustments or discrepancies to the pre‐populated amount should be reported
in AR‐36, Other Revenues (FFEL and Non FFEL) or AR‐39, Other Expenditures (FFEL and Non
FFEL), as appropriate. The populated amount is collection revenue recognized from payments to
the guaranty agency by defaulted borrowers.
[AR‐34] = [MR‐10‐A], Rehabilitated Loans (Principal Amount) + [MR‐11‐B], FFEL Consolidation
(Other Amount) + [MR‐12‐B], AWG (Principal, Interest, and Other Amounts) + [MR‐13‐B], Default
Collections (Principal, Interest, and Other)
Projected Years ‐ Report projected collection revenue recognized from payments to
guaranty agency by defaulted borrowers. Amount reported should be your agency share of
collections.
Include:
receipts from rehabilitated loan sales and consolidation of defaulted loans under the FFEL
program.
Do not include:
AR‐18 (Reinsurance Complement).
AR-35 Investment Income
Current Year ‐ Enter the amount of all investment income recognized in the Operating
Fund including net increase (decrease) in fair value of investments
Do not include:
interest earned on the Restricted Account, it should be reported in item AR‐36, Other
Revenue (FFEL and non‐FFEL).
Projected Years ‐ Report projected earnings on the Operating Fund investments.
Revised: September 2017
Page 81
Guaranty Agency Financial Report (GAFR) Guide
AR-36 Other Revenue (FFEL and Non-FFEL)
Current Year ‐ Report other revenue, FFEL and non‐FFEL, not reported elsewhere in the
Operating Fund section.
Include:
interest earned on the interest that was transferred from the Restricted Account
payments received to consolidate loans under the Direct Loan Program, net of the
Secretary’s fee
collection costs received from the Department on rehabilitated loansales under the
Rehabilitated Loan Purchase Program
interest and collection costs received on rehab loans sold to lenders
Report itemized entries (description and amount) to support the total reported in this line
item. (See Attachment B) In addition to the above mentioned items, itemized entries may include:
service income, default aversion, and VFA revenue.
Project Year ‐ Report other projected revenues, FFEL and non‐FFEL, not reported
elsewhere in the Operating Fund section. This amount will include interest earned on the interest
that was transferred from the Restricted Account and payments received to consolidate under the
Direct Loan Program, net of Secretary’s fee. Report projected itemized entries (description and
amount) to support the total reported in this line item. (See Attachment B)
AR-37 Collections of Defaulted Loans (Secretary Equitable Share)
No reporting required for this line item due to the 48‐hour rule. Secretary’s Equitable Share
should be reported in AR‐25, Other Expenses.
AR-38 Operating Expenses
Current Year ‐ Report expenses associated with guaranty agency related activities,
including application processing, loan disbursement, enrollment and repayment status
management, default aversion activities, default collection activities, school and lender training,
financial aid awareness and related outreach activities, and compliance monitoring.
Projected Years ‐ Projected expenses associated with guaranty agency related application
processing, loan disbursement, enrollment and repayment status management, default aversion
activities, default collection activities, school and lender training, financial aid awareness and
related outreach activities, and compliance monitoring.
AR-39 Other Expenditures (FFEL and Non-FFEL)
Revised: September 2017
Page 82
Guaranty Agency Financial Report (GAFR) Guide
Current Year ‐ Report other expenses, FFEL and Non‐FFEL, not reported elsewhere in the
Operating Fund section. This will include amounts used for default prevention activities and the
discount portion of discounted rehabilitated loan sales. Report itemized entries (description and
amount) to support total reported in this line item. (See Attachment B) Itemized entries may
include: 48‐hour rule, administration costs, transfers to federal fund, OIG audit liabilities, and rehab
premiums.
Project Year ‐ Report other projected expenses, FFEL and Non‐FFEL, not reported
elsewhere in the Operating Fund section. This will include amounts used for default prevention
activities. Report projected itemized entries (description and amount) to support total reported in
this line item. (See Attachment B)
AR-40 Ending Balance
Current Year ‐ The ending balance must equal the sum of AR‐29 through AR‐36 minus AR‐
37 through AR‐39 = AR‐40.
[AR‐40] = [AR‐29] + [AR‐30] + [AR‐31] + [AR‐32] + [AR‐33] + [AR‐34] +
[AR‐35] + [AR‐36] – [AR‐37] – [AR‐38] – [AR‐39]
Projected Years ‐ The projected ending balance must equal the sum of AR‐29 through AR‐
36 minus AR‐37 through AR‐39 = AR‐40.
Supplemental Information
AR-41 Amount Received from Federal Fund for Operating Expenses
(Repayable)
No reporting required for this line item.
AR-42 Amount Repaid to Federal Fund for Operating Expenses
No reporting required for this line item
Restricted Account
This section reported on all revenues and expenses of the restricted account that was
created to retain the recall amounts required by Section 422(h) of the HEA. This section is no longer
required.
AR-43 Beginning Balance (from 9/30/XX)
No reporting required for this line item.
Revised: September 2017
Page 83
Guaranty Agency Financial Report (GAFR) Guide
AR-44 Recall of Federal Funds from Federal Fund
No reporting required for this line item.
AR-45 Investment Income on Restricted Account
No reporting required for this line item. Amounts previously reported here for interest
earned on the Restricted Account is now reported in AR‐25, Other Expenses.
AR-46 Investment Income on Restricted Account Expensed for Default
Prevention
No reporting required for this line item. Amounts previously reported here for earnings
from the Restricted Reserve Account expensed for activities to reduce student loan defaults is now
reported in AR‐39, Other Expenditures.
AR-47 Ending Balance
No reporting required for this line item.
Balance Sheet Section (Federal Fund)
The balances reported in this section should reconcile to amounts reported on the
Guarantor’s audited financial statements Balance Sheet as of the end of the Federal fiscal year
9/30/XX. The ending balance AR‐57 in this section should equal the ending balance on AR‐26
(Federal Fund Activity Section). All reporting should be on an accrual basis and in accordance with
GAAP.
AR-48 Cash, Cash Equivalents and Investments
Report cash, cash equivalents and investment (regardless of maturity date of investments)
balances. If applicable, report your Voluntary Flexible Agreement (VFA) escrow balance in this line
item.
AR-49 Restricted Account Cash, Cash Equivalents and Investments
No reporting required for this line item. Do not report escrow balances in this line item.
AR-50 Net Investment in Property, Plant, Equipment and Inventory
Revised: September 2017
Page 84
Guaranty Agency Financial Report (GAFR) Guide
Report balances of property, plant, and equipment less accumulated depreciation.
AR-51 Accounts Receivable from the ED
Report balances owed to the Federal Fund by ED (i.e., reinsurance and other payments).
AR-52 Other Assets
Report total balances of other current and non‐current asset accounts that were not
reported in line items AR‐48 through AR‐51. Report itemized entries (description, long‐term or
short‐term, and amount) to support total reported in this line item. (See Attachment C) Short‐term
itemized entries may include: guarantee fee receivable, receivable from Operating Fund, and default
aversion fee rebate.
AR-53 Accounts Payable, Accrued Expenses, and Other Current
Liabilities
Report liabilities for expenses due, other than to ED, including amounts due Operating Fund
and claim payments payable to lenders, if amount is to be paid within 12 months. Report long‐term
portion in AR‐55 (Other Liabilities).
AR-54 Accounts Payable to ED
Report other liabilities for expenses due to ED within the next 12 months.
AR-55 Other Liabilities
Report other liabilities that are not reported in other line items, including outstanding
federal advances due to ED, and the remaining reserve return obligation, to be paid more than 12
months from current date (i.e., recall for FY 06 and FY 07). Report short‐term Liabilities in AR‐ 53,
Accounts Payable, Accrued Expenses and Current Liabilities
AR-56 Allowances and Other Non-Cash Charges to Federal Fund
Report allowances, such as deferred (unearned) Federal default fees, as well as other
obligations of the Federal Fund. Report itemized entries (description and amount) to support the
total reported in this line item (See Attachment C).
Revised: September 2017
Page 85
Guaranty Agency Financial Report (GAFR) Guide
AR-57 Federal Fund Balance
The Federal Fund balance on an accrual basis for the fiscal year being reported is calculated
by adding line items AR‐48 through AR‐52 and subtracting line items AR‐53 through AR‐56. This
amount should represent the equity on the audited balance sheet section of the Federal Fund. AR‐
57 must equal AR‐26.
[AR‐57] = [AR‐48] + [AR‐49] + [AR‐50] + [AR‐51] + [AR‐52] – [AR‐53] – [AR‐54] – [AR‐55] – [AR‐
56]
[AR‐57] = [AR‐26]
Revised: September 2017
Page 86
Guaranty Agency Financial Report (GAFR) Guide
ATTACHMENT A – Federal Fund Itemized Schedule
FEDERAL FUND
S C H E D U L E O F I T E M I Z E D L I N E I T E M S
ITEM NO. CATEGORY
AMT./ CY CY + 1 CY +2
ACTUAL PROJ. PROJ.
AR‐20
AR‐25
OTHER REVENUES:
OTHER EXPENSES:
Revised: September 2017
CY +3
PROJ.
CY + 4 CY + 5 EXPLANATION
PROJ. PROJ.
Page 87
Guaranty Agency Financial Report (GAFR) Guide
ATTACHMENT B – Operating Fund Itemized Schedule
OPERATING FUND
S C H E D U L E O F I T E M I Z E D L I N E I T E M S
ITEM NO. CATEGORY
AMT./ CY CY + 1 CY +2
ACTUAL PROJ. PROJ.
AR‐36
AR‐39
OTHER REVENUES:
FFEL:
NON‐FFEL:
OTHER
EXPENDITURES:
FFEL:
NON‐FFEL:
1. Other Student
Financial
Aid related
expenditures for the
benefit of students
Revised: September 2017
CY +3
PROJ.
CY +4
PROJ.
CY + 5 EXPLANATION
PROJ.
Page 88
Guaranty Agency Financial Report (GAFR) Guide
ATTACHMENT C – Balance Sheet Section Itemized
Schedule
BALANCE SHEET SECTION (Federal Fund)
S C H E D U L E O F I T E M I Z E D L I N E I T E M S
ITEM NO. CATEGORY
AR‐52
OTHER ASSETS:
ALLOWANCES AND
OTHER NON‐CASH
CHARGES TO FEDERAL
FUND:
AR‐56
AMT./ CY CY + 1
ACTUAL PROJ.
CY +2
PROJ.
CY +3
PROJ.
CY + 4
PROJ.
CY + 5
PROJ.
EXPLANATION
Revised: September 2017
Page 89
Guaranty Agency Financial Report (GAFR) Guide
ATTACHMENT D – Guaranty Agency List
GUARANTY AGENCY LIST
Below are two lists of guaranty agencies (GAs). The first is a list of the GAs that currently or
previously received payments from ED under the Federal Family Education Loan Program. The
second is a list of those GAs that no longer issue loan guarantees or have closed or merged with
other agencies. The lists are in numerical order by GA code.
Included for each guaranty agency (GA) is its GA code, GA state name, GA abbreviation, and
full legal name. For brevity and automatic data processing purposes, ED refers to a guaranty agency
by a three‐digit code (GA code) or by the name of the principal state in which it does business (GA
state name). ED sometimes also refers to a guaranty agency by a two‐letter abbreviation (GA
abbreviation) based on the GA state name.
GA
CODE
708
712
717
721
722
723
725
726
729
731
733
734
735
736
737
740
742
744
748
749
750
753
755
800
927
951
GA STATE NAME
Colorado
Florida
Illinois
Kentucky
Louisiana
Maine
Massachusetts
Michigan
Missouri
Nebraska (II) *
New Hampshire
New Jersey
New Mexico
New York
North Carolina
Oklahoma
Pennsylvania
Rhode Island
Texas (II) *
Utah
Vermont
Washington
Wisconsin
USA Funds
Minnesota
Minnesota
GA ABBREVIATION
CO
FL
IL
KY
LA
ME
MA
MI
MO
NE
NH
NJ
NM
NY
NC
OK
PA
RI
TX
UT
VT
WA
WI
UF
MB
MV
LEGAL NAME
Colorado Student Loan Program DBA College Assist
Florida Student Financial Assistance Foundation
Illinois Student Assistance Commission
Kentucky Higher Education Assistance Authority
Louisiana Office of Student Financial Assistance
Finance Authority of Maine
Massachusetts Higher Education Assistance Corporation
Michigan Higher Education Assistance Authority
Coordinating Board for Higher Education
Nebraska Student Loan Program
New Hampshire Higher Education Assistance Foundation
New Jersey Higher Education Assistance Authority
Student Loan Guarantee Corporation
New York State Higher Education Services Corporation
North Carolina State Education Assistance Authority
Oklahoma Guaranteed Student Loan Program
Pennsylvania Higher Education Assistance Agency
Rhode Island Higher Education Assistance Authority
Texas Guaranteed Student Loan Corporation
Utah Higher Education Assistance Authority
Vermont Student Assistance Corporation
Northwest Education Loan Association
Great Lakes Higher Education Corporation
United Student Aid Funds, Inc.
Educational Credit Management Corporation I
Educational Credit Management Corporation II
*The Roman numerals in parentheses in some GA’s state names are used to distinguish between guaranty agencies in states which have more
than one guaranty agency involved in the Federal Family Education Loan Program. The numerals are assigned from low to high in the order
in which the guaranty agencies signed insurance agreements with the Secretary of Education.
Revised: September 2017
Page 90
Guaranty Agency Financial Report (GAFR) Guide
Guaranty Agencies that have ceased participation:
GA
CODE
611
620
627
631
654
656
701
706
705
709
710
711
713
716
718
719
724
727
728
730
738
739
741
745
746
747
751
772
778
804
815
948
District of Columbia (II) *
Kansas
Minnesota (I) *
Nebraska (I) *
West Virginia
Wyoming
Alabama
California
Arkansas
Connecticut
Delaware
District of Columbia (I) *
Georgia
Idaho
Indiana
Iowa
Maryland
Minnesota (II) *
Mississippi
Montana
North Dakota
Ohio
Oregon
South Carolina
South Dakota
Tennessee
GA
ABBREVIATION
DC
KS
MN
NB
WV
WY
AL
CA
AR
CT
DE
DG
GA
ID
IN
IA
MD
MM
MS
MT
ND
OH
OR
SC
SD
TN
Virginia
Puerto Rico
Virgin Islands
Arizona
Hawaii
Texas (I) *
VA
PR
VI
AZ
HI
TC
GA STATE NAME
LEGAL NAME
Higher Education Assistance Foundation - District of Columbia Region
Higher Education Assistance Foundation - Kansas Region
Higher Education Assistance Foundation
Higher Education Assistance Foundation - Nebraska Region
Higher Education Assistance Foundation - West Virginia Region
Higher Education Assistance Foundation - Wyoming Region
Alabama Commission on Higher Education
Education Credit Management Corporation – California
Student Loan Guarantee Foundation of Arkansas
Connecticut Student Loan Foundation
Delaware Postsecondary Education Commission
District of Columbia Student Loan Insurance Program
Georgia Higher Education Assistance Corporation
Student Loan Fund of Idaho, Inc.
State Student Assistance Commission of Indiana
Iowa College Aid Commission
Maryland Higher Education Loan Corporation
Norstar Guarantee, Inc.
Mississippi Guaranteed Student Loan Agency
Guarantee Student Loan Program
North Dakota Student Loan Program
Ohio Student Loan Commission
Oregon State Scholarship Commission
South Carolina Loan Corporation
Education Assistance Corporation
Tennessee Student Assistance Corporation
Virginia State Education Assistance Authority
Puerto Rico Higher Education Assistance Corporation
Virgin Islands Joint Boards of Education
Arizona Education Loan Program
Hawaii Education Loan Program
Texas Higher Education Coordinating Board
*The Roman numerals in parentheses in some GA’s state names are used to distinguish between guaranty agencies in states which have more
than one guaranty agency involved in the Federal Family Education Loan Program. The numerals are assigned from low to high in the order
in which the guaranty agencies signed insurance agreements with the Secretary of Education.
Revised: September 2017
Page 91
| File Type | application/pdf |
| File Modified | 0000-00-00 |
| File Created | 0000-00-00 |